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House | June 30, 2016 | Chamber | House Convenes

Full MP3 Audio File

[BLANK_AUDIO] [BLANK_AUDIO]. Special message from the senate the clerk will read. >> MR. speaker pursuant to your message received today that the house representatives failed to concur with house bill 1039. Senate committee substitute third edition a bill to be entitled an act too increase the authorization for Sampson county occupancy act to modify the [INAUDIBLE] county occupancy tax to modify the use of proceeds of Jacksonville city occupancy tax. To authorize the city of Stanford to levy the occupancy tax, to okay the special tax induced in Harnett county and authorize a special tax in district to levy occupancy and to make changes to the Cumberland county occupancy tax prepared pay our food tax. The president [UNKNOWN] appoint Sen Jackson chairs, Sen [UNKNOWN], Brown, Raven, Meredith and Clarke on the part of the senate to confer with the light committee appointed by honorable body that the end of the differences arising may be resolved. [INAUDIBLE] principal clerk. noted. [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO]. [NOISE]. >> House will come back to order. Chair, direct 12H be suspended. At the request of representative [UNKNOWN] Moore, who is already violating the rule. >>[NOISE] >> Chair directs Center bill 371. which convenes report counter for July 1st be removed from the counter for July 1st be referred to private rules in rules calendar and operations of the house. [BLANK_AUDIO] [BLANK_AUDIO]. Mr. Speaker, could you repeat that bill that's been moved to finance I guess. >> Senate Bill 371 it's not on today's calendar. there's also senate bill 326 which is on today's calendar to local government building structures, he is gonna need a great deal of amendment. So the chair directs that that bill be removed from today's calendar and referred to committee on rules calendar and operations of the house. [BLANK_AUDIO] [BLANK_AUDIO] .Senate bill 865 the clerk will read. >> [BLANK_AUDIO]. Senator Sanderson senate bill 865 a bill to be entitled an act to make administrative changes to the state Plan for teachers and state employees statutes to increase the number of local government able to participate in the state health plan and to make changes to the state health plan premiums paid by local government employees. General Assembly North Carolina enacts. >> The representative from McDowell County has the floor. >> Thank you Mr. Speaker. Send forth an amendment first. First. [BLANK_AUDIO]. >> Clerk will read the amendment. [BLANK_AUDIO]

>> Representative Dobson moves to amend the bill on page two lines 15 through 16 by deleting the phrase. [BLANK_AUDIO] >> The Gentleman's recognized to debate the amendment. >> Thank you Mr. Speaker. Members, this is an amendment. Amendment to Senate Bill 865 dealing with the state health plan originating from the agency. It's an agreed upon amendment, really technical in nature between Blue Cross and the state health plan that's basically redundant language. We all agree that this language could and should be removed So I'll get into the bill and the data sharing and what all of it incorporates after the amendment, this is a technical amendment to reduce redundancy in the bill, and I'll appreciate your support. [BLANK_AUDIO] >> Okay, then. We have before us senate [INAUDIBLE] 65 amendment 1 I see no one else in the queue. All those in favor vote aye, all those opposed vote no. The Clerk will open the vote. >> [BLANK_AUDIO] [BLANK_AUDIO]. The clerk will lock the machine and will record the vote. [BLANK_AUDIO]. Okay amendment 1 Senate Bill 865, 112 in favor, non opposed We will proceed on back to Senate Bill 865. >> [CROSS-TALK] >> You continue to have the floor. >> Mr. Speaker. >> Representative Bishop you have the floor. >> I was in the chamber and would request to be recorded as voting aye. >> The Clerk will so record. Representative Dobson you have the floor. >> Thank you Mr. Speaker members I'll be brief basically this is a bill that originated from the state health plan most of it is, a lot of it is technical in nature some of it is not so I'll try to got through the bill as quickly as I can, sections one, two and three deal with data sharing between the state health plan and the insurance provider, the plan already receives claims data from these third party administrators but does not receive this data in association with provider indicators so basically they are receiving the data but not specific data with regards to which position is providing the service, which hospital is providing the service so, the data claims parts sections one two and three just gives more specific information and allows more sharing of data between the State health plan and the provider. I will also point out that this is agreed upon, compromising language between the entities. Section four requires local governments to follow the board approved premium strategy of the State House Plan is concerned about local units deviating from the board approved premium which creates administrative challenges for the plan and it's members so basically section four is saying that local governments can't charge more than the State Health Plan charges for insurance premiums. Section five and six expands the cap of local governments participation in the State Health Plan up to 16,000. I know some concern was expressed with this portion in insurance committee, I'll just say that the State Health Plan is not opposed to this and according to them it's revenue neutral. Currently it's at 10,000, this will raise it to 16,000. I would appreciate your support on that as well. Section seven deals with IRS reporting with regard to the affordable care act, currently the state health plan has to report for every state employee under this provision the state health plan would still be responsible for retirees but it would allow each department to report on their employees to the federal government and to the federal government of health and human services for the Affordable Care Act requirements. Section eight is technical in nature. The Bill clarifies the plans exception for the definition of health benefit plan in chapter 58 of the general statute. That's all it does, it's not controversial and that's a technical piece. Members I appreciate your support for this agency Bill. Thank you Mr. Speaker. The [INAUDIBLE] from Nash County is recognized. >> To debate the bill. >> You have the floor. >> Thank you. >> This bill this time I'm really kinda torn and I'm usually not torn on this bills at all I think this is a very, one section of this bill I think to which Representative Dobson already alluded is a very bad idea, we let the cat out of the bag a long time before I got here though, however, and that is allowing local government units to touch onto our state health plan. It's bad for a couple of reasons.

It's bad because first of all, it takes business away from private enterprising and puts incidents to our plan. Now second, it's bad because I'm really concerned about the long term financial security of our state health plan.And the more of these municipalities we take in, it's true that there won't be any effect immediately, because they are gonna pay the premium for it, but as most of you probably know I state health plan as a self insurance plan. It's not a plan that some insurance company pays the claims for and then figures out a premium for. Our premiums are basically just a cover of the claims that the members have. And I feel like probably most of the local governments that come on are probably coming on for the same reason. My county wants to come on currently because they've had large increases due to large claims. And that's the only reason I'm torn about this Bill to have this cuz now my County wants to get on it and join everybody else. I still voted no in insurance company and I'm still gong to vote no today cuz I still think this is a bad idea long term. We don't know what kind of risk we're adding to the State Health Plan. One other thing I think is problematic is that although a county or city may want to come into our plan now because the can get in cheaper, what if three years from now the local agent can offer them a better rate than what they are getting through the state health plan? Well according to the way we've got the bill written out they don't get out by next year. They don't get out their stuck. So the local agent maybe be able to find them a better deal five years from now if we don't keep that in health insurance mandates here and still have some health insurance companies in North Carolina. And they maybe stuck in the state health plan. On the other hand if we allow that then the groups that are gonna get out are going to be the healthy groups and we are going to have adverse selection in the state health plan. So no matter what we do if we continue this monster going forward we are just making problems for ourselves just want you to realize that, and in lower Manhattan county successful and gets in I'm voting no on this bill. [BLANK_AUDIO] >> For what reason does the gentlemen from Wake County raise? >> To the debate the bill. >> You have the floor. >> To go with what the Representative Collins has said, I'm speaking for two statewide associations today. The North Carolina Association of The Natural Insurance Professionals and the second one is North Carolina Health Underwriters Association, and they're both opposed to this bill. The reason they're opposed to it and you people from the rural county might wanna think about this. It's when somebody, a local agent, is given that good service. They may live in Roanoke Rapids or Morganton or wherever they may be but they're a local agent and they're there. And they're providing service and you're helping a local business. But when it goes to the great city of Riley and they get on the state health plan, then that agent loses the business. So that's mainly why I wanna speak. I agree with everything that Representative Collins had to say about the bill. The last thing I've asked the state health insurance, the state treasurer's office to give me a claim report in the next month and I'm gonna analyze it to see it's gonna take every city and every county that's currently covered one of the plan and give three year claim and look at walls ratio's because a lot and and that may sound boring to you because you don't do that for a living, but if the only reason these local governments are coming on the plan is they're probably getting big rate increases cuz they've had horrible claims and their rates have gone up. I want to find out are we in fact taking a lot of walking wounded on our plan that will inflate the premiums for everybody, else thank you. The gentle lady from Orange County for what reason to do you rise? >> Debate the motion. >> You have the floor. >> Thank you ladies and gentlemen of the house. This is actually a very good request county employees are by and large younger and healthier than state employees so the greater number if people we can get into the state plan that our healthier and fewer claims the better off that will be for the state health plan so these are public employees they're tax supported employees and I think it's good for our state health plan I hope you'll vote for the bill. [BLANK_AUDIO] >> For what reason does the Representative from Columbus County seek the floor? >> To debate the bill. >> You have the floor. >> My county like Representative Collins' county is requesting to get on the state health plan and it's due to the fact that they don't have increases and their insurance, but I want you to consider one thing, what Representative Innscor just said. There is some validity to what she just said about the employees in the camp.

Allow those are younger and they don't require the use of a health plan us much as some of the older retirees like myself would. So I would hope that in the interest to fair just especially to someone whose real counties that have gotten a big smack in the face like Yaashi would say to support this Bill. [BLANK_ AUDIO] >> For what reason does the Representative from Alamance County rise? >> To debate the bill. >> You have the floor. >> Thank you Mr. Speaker. Speaker what I also wanna say how much fun it is for me as your seatmate to say Speaker Whitmire, Speaker Whitmire, so congratulations. I've got a favor to ask of my colleagues and that is is there anyone here who can tell me me what the current rate of funding for our state health plan is in relation to obligations? I would appreciate that information, thank you. [BLANK_AUDIO] >> I'm giving that pause just in case. [BLANK_AUDIO] Well with no one else in the queue with a question before the halves on second reading is the passage of senate bill 865. All those in favor say Aye, all opposed vote No. The clerk will open the vote. [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] All right, the clerk will lock the machine and record the vote. [BLANK_AUDIO] On second reading Senate Bill 865 the aye's have it 94-22. And without objection, the clerk will read again. >> General Assembly of North Carolina enacts. >> [BLANK_AUDIO] All those in favor. >> I object. [BLANK_AUDIO] >> Further discussion, further debate? Hearing none, the question before the house is the passage of Senate Bill 865, all those in favor say aye? >> Aye. >> All those opposed say no. >> No. >> In the opinion of the chair the ayes have it. Senate Bill 865 is ordered engrossed and returned to the Senate. [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] Senate bill 886 the clerk will read. >> Senators Wells and Apodaca senate bill 886 a bill to be entitled an act, to honor Captain Brady Long and all the future firefighters and rescue squad workers killed in the line of duty by amending North Carolina firefighter and rescue squad pension and to provide survivorship benefit for members killed in the line of duty and to consolidate public record laws relating to to retirement. And to make all the retirement and administrative changes. General Assembly of North Carolina enacts. >> For what reason does the Representative from Randolph County rise? >> Debate the bill. >> You have the floor. >> Thank you Mr.

Speaker and honorable body I will give you the short version however if there's anything you don't understand i'll give you the long version. All right section number one honors fallen firefighter captain Brady Long who was killed i the line of duty. It also adds language providing surviorship benefits fr a member killed in the line of duty for the North Carolina firefighters and rescue squad workers pension fund. Two clarifies the retirement information is subject to public records law. Four allows for certain forms to be transmitted electronically to the teachers and state employees system. Five allows letters of credit issued by the federal loan bank to be used to collateralize deposits. Six requires [INAUDIBLE] board of trustees to develop a state contribution rate stabilization policy for the NC firefighters and rescue squad workers' pension fund. Seven adds the director of the office of state and human resources and ex official member of the teachers board replacing the representative of higher education and provides for the appointment of the director of the retirement system. Recurs annual evaluation to teachers and [INAUDIBLE] board to include section providing an analysis of assets on a market basis used in a 30 year treasure rate. 8 makes reference to the supplemental retirement board of trustees consistent across statutes, and provides that the four or three people in here has just the same procurement procedure that's 401k, and 457 plans and nine amends the report in the finance requirements and the disability income plan Mr. Speaker >> Thank you, the question before the house is the passage of Senate Bill 886. All those in favor vote aye, all those opposed vote no, the clerk will open the vote. [BLANK_AUDIO] [Blank_AUDIO] The Clerk will lock the machine and record the vote. On second reading Senate Bill 886 passes 115 to 0. Senate Bill 886 will be read again. >> General Assembly of North Carolina enacts. >> Any further discussion or debate? All those in favor on the third reading of Senate Bill 886 say aye? >> Aye. >> All those opposed no. The aye's have it. Appears unanimous. Next we will have and it will be returned to the senate for concurrence. [BLANK AUDIO] Next we have the conference report for senate bill 482. Who is handling that on the floor? The clerk will read. >> The conference report to resolve the difference between the senate and the house, of representatives on Senate Bill 482. A Bill to be entitled An act to make technical clarifying changes to the limited liability company act and to further define employees rights to invention invented by the employees. House committee substitute favorable 62216 submitted the following report. General Assembly of North Carolina enacts. >> For what reason does the representative from Mecklenburg county rise? >> To move for adoption of the conference report. >> You have the floor. >> Thank you Mr Speaker. Ladies and gentlemen we passed this just a couple of days ago. It makes a technical change and a clarifying change to the LLC act which was restated in 2013, and it codifies the result of a supreme court opinion that came at the beginning of June. After we got that done the folks concerning one of the clarifying changes the LLC Act decided there was a language revision that was needed so then non-concurred. We've had the conference report to adjust that so I urge your support thank you. [BLANK_AUDIO] >> Further discussion or debate. The question before the House is the approval of Senate Bill 482's conference report. All those in favor vote aye, all those opposed vote no. The Clerk will open the vote. [BLANK_AUDIO] The clerk will lock the machine and record the vote. Conference report senate bill 482 passes 114 to zero, the senate will be still notified. And at this point stand by. [BLANK_AUDIO] [BLANK_AUDIO]

The house will momentarily be at ease. [BLANK_AUDIO] [BLANK_AUDIO] House bill 1030, the clerk will read. Conferees appointed to resolve the difference between the senate and house representatives on house bill 1030 agreed to be in time to modify the current operations in capital improvement appropriation act of 2015 and to make all the changes in the budget operating of the state. Senate pensions and the retirement agent committee substitute [INAUDIBLE] 116, sixth edition in engrossed 6316 submit the following report. General assembly of North Carolina enacts.>. For what purpose does the gentleman from Wake Representative Dollar arise? >> To move the adoption of the conference report. >> The gentleman from wake is move the adoption of the conference report the motion is in order. The conference report is properly before the house, the gentleman is recognized to debate the conference report. >> Thank you Mr. speaker and members of the house. A few short weeks ago we and a strong bipartisan vote over 100 votes sent our negotiators out to make adjustments to this year's upcoming budget. Our negotiators took that mandate into the conference process and I believe they have come away with an outstanding conference report that has been out now for the last three days that we presented to this body. You know the house is truly the people's body. It has a strong tradition of investing in human capital and investing in the people of our great state. To give you an example, $560 million is being invested in new money and salaries and bonuses for teachers, state employees and retirees. An average 4.7% increase for teachers achieving the goal that the governor had set for the that average teacher pay in the stare of North Carolina would be over $50,000, we have achieved that goal and we also, And we also have a commitment to raise teacher's salaries in North Carolina over the next two additional years to $55,000 by 2018. For state employees we were able to achieve 3% money which was the goal that we had i this house 1.5% of that is across the board, 0.5% for bonus which is also across the board, and 1% funding for mayor raises which could be more or less than that figure based on performance in the agencies. The budget fully funds all of the step increases. The Judicial branch employees will receive, most of them an average increase of about 4.5%, which has been long overdue. Our budget also provides 6.9% million meant for continued implementation of the custody level pay for correction officers we're continuing that commitment, for our retirees we negotiated very hard, you know the challenges that we've had. We were able to achieve a 1.6% supplemental bonus for our retirees in this budget. In education we have fully funded enrollment growth. We have provided funds for digital learning and textbook digital material. You'll be hearing more about those details in a moment. We made sure that we removed the sunset so that our drivers aid program that we fought so hard for last year is going to be on firm financial footing for our state and young people going forward. We've also provided money in an number of critical areas like tobacco trust fund, farm land preservation, clean water and key investments in airports and rail transit with a strategic Transportation investment fund. You'll be hearing more about those details. A major initiative that the governor is taking part in along with members of this chamber and stake holders from across the state was a task for which was on mental health and substance abuse. We're very pleased that in the conference process we were able to secure $10 million, $10 million recurring to move the recommendations

of that task force forward and another 10 million in non recurring funds for a total of $20 million so again work toward a critical mental health issues in this state. It also went to the leadership of a number of our house members, I'll recognize Malone particular in this, with regards to the Dorothy Edits Fund, we believe that under the provisions that have been set forth across the state we will be able to increase a mental health beds, access to mental health beds somewhere between 120 and 130 beds.They're critically important to our state. We're providing another 320 CAP/DA slots which again these are for Alzheimer's patients and these are solely needed in our state. We were also able to fund funds to add another 250 slots for individuals with intellectual and developmental disabilities. Again taking a bite out of that waiting list that we have long had in our state. We are investing in our human capital in this state, we're making critical investments and our state employees and our teachers, we're making critical investments in our areas of health and human services and performance in classroom We are seeking excellence in this state, and we are also investing in infrastructure. And you will hear a number of those items that will be discussed with you as well with the various areas. I again want to thank all of our chairs, full chairs of the committee, Chairman Johnson, Chairman Lambeth. Chairman McGrady all of the area chair. Some of them will be speaking to you shortly about the details of this budget. In this budget we were also able to make sure that we're showing up for the future. We provide $ 474 million into the savings reserve to raise that reserve to a record, $1.58 billion, it has never been that high in the State of North Carolina. 7.5% of our general fund budget, with a goal next year to reach 8% which is the same that we require for our local Municipalities. We're being prudent. We're also working to help working and middle class families. So this budget and you'll hear the finance provisions, raises the standard deduction that is currently at $15,500 this coming year to $16,500 and the following year raising that standard deduction an additional $1000. So that we give solid tax relief to working families in the middle class of our state. My friends we took the mandate of this chamber and I'm again very pleased with what our negotiators have produced I ask for your support I appreciate your indulgence to hear some of the specific items from our Chairs. As I understand it what we have in place is an agreement between the two. The majority party and minority party to each side take up to one hour to debate so our debate will be limited to two hours I know that makes everyone very happy, on second reading and we don't have to take that much time but we will if necessary. But again we're very pleased with the process. We're here at the end of June. We look forward to passing a budget on time that meets the needs of our state, moves North Carolina forward and makes critical investments that we want to make that reflect the values of this great body and this great chamber. I appreciate your support thank you. [BLANK_AUDIO] [BLANK_AUDIO] Members, the Chair's been provided with a list of speakers from the senior appropriate [UNKNOWN] and also from the leader of the minority party. It's the Chair's intent to proceed down this list for the purpose of debating the conference report the gentleman from union representative Horn is recognized.

>> Thank you Mr.Speaker we had a broad overview of how the process has gone, I can't tell you how appreciative I am of our leadership my co-chairs chairman Blackwell and chairman Bryan for putting together an education budget that I believe is probably the most innovative education budget that we have had shouldn't we and maybe one of the most innovative education budgets we've ever passed. This budget takes the average teacher salaries as you have already heard more than $50000 a year by providing an average 4.7% increase for our educators for 2016/17 school year, teachers will get a raise each year for the next 15 years of credible service, an interior base raises for educators with 16 or more years of service thereafter. School based administrators will receive a 1.5% salary increase and a 0.5% nonrecurring bonus as well as their experience base step increases. Other LEA personnel will receive both the 1.5% salary increase and an addition 0.5% non recurring bonus. In this budget retirees will also receive a one time 1.6% cost of living supplement. This budget as you've heard fully funds enrollment growth in K-12 by adding $47.8 million to school funding allotments.It fully funds or rather we create in this budget a two year pilot for third grade reading teacher performance bonuses for teachers performing highly, on third grade reading assessments. This budget establishes performance bonuses for teachers in IV, AP, and CTE programs, for those teachers whose students achieve a certain AV or excuse me AP or IB grade level or completes an industry certification. We increase funding for instructional materials by $2.5 million bringing instructional material funding to $47 million. And concurrently we increase funding for text books and digital resources by an additional 10 million dollars bringing that total to $71 million. This budget supports the implementation of the North Carolina digital learning plan with - >> Follow up. >> 4.37 million of which is recurring money. Creates a five county pilot project for teaching assistants wishing to get their teaching certification, continues the 15 point scale for school performance grades for the next three years, this budget establishes up to five local alternative teacher preparation programs to provide innovative routes to licencure Programs to be run by local boards of education in partnerships within institutions of higher learning. We're very focused on the declining teacher enrollment and the concern we have about the ability of teachers to have them in our classrooms. This budget creates a three year pilot for advanced Teaching rules and innovative compensation models. A project we've been talking about in the House for four years. For our community colleges, this budget funds recurring salary increases and non-recurring bonuses for community college employees and provides the same deal for retirees as with the public school that I just mentioned a minute ago. Although this budget reduces enrollment funding for community colleges because we fund a community colleges in area, it does restore 12.4 million of the management flex reduction as well as provide $6 million in equipment funding. This budget provides 1.6 million to fund three new multi-campus centers for the Asheville Buncombe Technical Community College, Durham Tech and Mitchell community college. We've also modified funding for performance matrix For our community college to improve assessments of students success and incentives for college performance.This budget funds Gaston community college center for advanced manufacturing and the enrollment of competency based education incubator programs.Partners in this project includes central Piedmont Community College for Tech, Sternly Community College, Wake Tech and the North Carolina Community College System office. For Our university system this budget provides fund for 1.5% annual

salary increase and another 0.5% one time bonus for permanent employees. Provides $31 million in additional funding for enrollment growth. Next year UNC system is projected to have 260139 students that's a one and half percent increase over 2015/16. This budget funds a new unit UNC teacher and The prep labaratory program for KA charter style schools to be run by eight UNC schools that offer education programs and that will be phased in four schools and then four schools. This budget increases career based internships for student of HPC by 58% Provide $2.3 million to support academic strategies to recruit, retain, and graduate students that have dropped out, prior to completing their baccalaureate program, the baccalaureate degrees. And therefore preparing them more fully for the work place. We've eliminated the cap of advancement, we provided for the establishment of a North Carolina Policy Collaborative, increase funding for NC state's Hedge institute, provided additional 3.5 million for principle preparation competitive grants, increased funding for special hedge, we've supported the schools of engineering and implements in this budget, the access to affordable college education act. Which sets the situation at three of our UNC institutions UNC Pinbrook Western Carolina and Elizabeth state. That $500 for resident and $2500 for non residence students effective with the 2018/19 academic year. It fixes the tuition for incoming freshman and transfer students for up to four or five academic year depending on your course program and caps increases in fees at no more than 3% a year. This is an extremely important to families especially with specially with multiple kids with college. Finally this program establishes new scholarship program for NC central and NCAT and it delays by one year the NC got program in consideration of the changes in administration at the UNC system. Ladies and gentlemen. I think we can all be very proud of what we've accomplished what were accomplishing in education in this state. I strongly urge your support for the budget thank you Mr. speaker. >> The gentleman from McDowell representative Dopson is recognized to debate the conference report. >> Thank you Mr. Speaker Members I'll try to debrief you all have seen the HHS portion of the budget, I'll just go through some of the highlights real quickly but before I do, I wanna start by mentioning something that my friend Representative Jackson said, I think it was when we were debating the original house budget in which I usually agree with him, when he said, usually there's something leave the House and go to conference or go to the other Chamber and get better once it leaves. That usually doesn't happen, and most of the time I would agree with him but on this conference report, I think it has gotten better. As Representative Horn indicated with the education piece and I think most certainly with the Health and Human Services piece as well, I think the budget Think the budget has improved. The HSS budget is very much like the original house budget with a lot of positive things that are think we all can support. There's nothing in the HSS budget that will cause harm or adversely affect our providers or the most vulnerable in North Carolina. I'd also like to think before I get into some of the specifics, commend my colleagues Representative AbEler, Representative Malone and Representative Briston on their hard work and in negotiating in putting together this budget. I'm quite proud to work with each of them. Members the Conference Report, provides funding for Project Care, of $550,000 to provide vouchers for response/g services, to support families acting as care givers for individuals with Alzheimer's disease. This doubles the amount of funding for Project Care. This budget provides 1.3 million to to increase the numbers of NC Pre-K slots by 260 bringing the total number of slots to 28,900 Pre-K slots for children in North Carolina. Provides 1.3 million to increase the number of child care subsidy slots by 260. The childcare subsidy market rate increase provides 3.5 million to increase the market rate effective October 1st, for children ages 3 to 5 in 3 and 4 and 5 star centers and homes in tier one and tier two counties.

We provide funds to implement the child welfare federal improvement plan. That was required under the child and family service review. We provide temporary financial assistance for facility licence to accept state county special assistance payments. Another important addition. I'll talk more about the As for in a minute we provided $20 million from the Dorothea Dix property fund. That Representative Malone and representative [UNKNOWN] worked tirelessly on. To construct or convert existing rural hospital acute care beds to licences short term impatient behavioral beds and to construct new child facility base Chris centers. With the Dorothea Dix fund. We fund the expansion of 320 slots in the cap [UNKNOWN] waver to help more Alzheimer patients. Effective January 1, 2017. We fund 250 additional innovation waver slots. Effective January 1, by increasing to $2.6 million. [BLANK_AUDIO] Members in HSS budget for this year we've made investments that are long overdue and things that I think we can all agree on to help those that are least among us. Also in this budget there's been a commitment to mental health As of this week 30 million from the single string funding that we promised last year has been transferred as my understanding or will be transferred this week or next with the provision that assuming that there's a rebase surplus next year. Another 30 million will be transferred into the single string fund for a total of 60 million, back into mental health. There's a commitment to the governor's task force that was a bipartisan task force headed up by Chief Justice Martin, Secretary Brazier to work on the critical parts of North Carolina. In agreement with the governor and the department we provided 10 million in recurring 10 million in non-recurring to meet those needs across this state. So we're quite proud of the investment in mental health as well. Members it's there for you to see with the specifics, we just wanted to hit some of the highlights, we're very proud of this HHS budget and we would appreciate your support. Thank you. >> The gentleman from Gentleman from Duplin, Representative Dixon is recognized to debate the conference report. >> Thank you Mr. Speaker and members. First off let me start out by saying how much I appreciate working with Representative West and representative Mckeel Rauff and our staff that we had assigned to this. And also former Representative Mitch Galesby was very helpful in our process. And I appreciate Representative West and Representative Mckeel Rauff tutored me along and teaching me the tricks of the trade. I'm just as green as wet paint and I have a severe case of naivety. They let me have a little money every now and then when I really tuned up and started crying and Representative West and Mckeel Rauff would slide a little bit over to my side of the table and I really appreciate that folks. The total proposed committee spending for the Agner Committee in 16, 17 is $536.3 Million. I think everybody in this chamber understands that I believe in agriculture and I think it is a wonderful part of our state in our industry. You know fighting fire as you imported the commissioner and other people, we had an old plane if it was on a level place and you didn't fill it with a [INAUDIBLE] full of water would get off so we didn't have a chance to fight fires in the mountains where so many folks live. 3 million for fire fighting plane and heavy equipment to improvement that. [INAUDIBLE] forest is another area and we provide nine new positions for that. International marking is very important to agriculture as well as a lot of other things and we've provided $500,000 for international market, particular police, we've got 1.2 million for the [UNKNOWN] trust fund and a million dollars in the agriculture farm land preservation trust fund. All of us are very thankful for the quality if environment that we have. We've got some good provisions in there we have an additional $1 million for something that we hope many of us hope will be an economic driver going forward and that is for the oyster sanctuaries. $149,000 for two additional positions in marine fisheries to promote

shellfish production which we are a little behind on. Also provides $18.8 million to expand state water and waste water infrastructure grants. Wildlife resources condition do is funded at the proper level and it restores $2.1 million transfer from the gas tax revenue for For voting safety, Commerce and state aid creates an international recruiting coordinating office in commerce. Provided 3.75 million to commerce for domestic and international business advertising. $78000 to support a position in the new economic development partnership, dedicated to attract in food processing entities and $1 million for tourism advertising. $5.7 million for 56 municipalities for downtown revitalization grants. Provides an additional $600,000 for the high point furniture market, and natural and culture resources. Provides an additional 8.6 million for the clean wood management trust fund provides an additional $500,000 for the grass roots arch program. $200,000 for state wide children digital library. Just a couple of special provisions of note, future farmers of America we established a pilot program and ear marked $120,000 through the tobacco trust fund to support select local FFA programs. One other notable thing we clarified the aquatic weed control funding eligibility and expanded the reliable uses of that fund the Aquatic Weed Control funding from state lake to all waters of this state. I think we have a great budget, I know we have a great budget and Agner/g would appreciate your ultimate vote for the budget. Thank You. >> The Lady from Randolph, Representative Hurley is recognized to debate the conference report. >> Thank you Mr. Speaker. I'm very pleased with our budget. I have justice and public safety and I wanna thank my other Co-Chairs Representative Daughtry Faircloth and Bowes, they were all very helpful. I had to keep them in line lots of the time, so they would not spend too much money. But anyway we had our budget as 10.6 Billion and is 98.8 Million, 3.9% above the amount enacted the last year. And the highlights are provides 1.4 million to fund a medical claim processing contract for inmate medical services, provides eight million for the State Bureau of Investigation to purchase a new plane. And provides funds to equip and operate the new Western crime lab in Edneyville/g including 1.1 million in your equipment. And this should really help expedite our turn around time for our law enforcement evidence results. Provides 2.2 million for outsource and toxicology and DNA analysis services. It provides 3.5 million non recurring to the private assigned council, To address the backlog of payments to Lawyers who have represented indigent clients. If you're around the court house much and many of you are Attorneys do this type of work.They have to wait every year to get paid. So we're working on catching this up, so we don't have that problem in future. They're several provisions relating to the faction in future of ideas which is in Joint Defense services. It is in conjunction with AOC we'll pilot a program of flat fee payments for attorneys representing indigent clients. IDS has also been directed to study and feasible established satellites our regional capital defendants offices. Finally ideas has been directed to study the prosecution of capital cases to determine whether there is a more efficient way to identify potential capital cases. And how the state may more effectively utilize local council in these cases. Provides funding for an additional district court judge in the district 19 A in Cabarrus County and in district 27 B Cleveland and Lincoln Counties. Restores funding for an additional assistant district attorney position, in district 9A [INAUDIBLE] in person counties, district 15B Orange and Chatham Counties and a District 20B Union County. This positions were eliminated in 2011 and 2012 as part of a voluntary reduction enforce program. And that is just putting them back where they needed to be. We also got step increases or they also got step increases for the state highway patrol magistrates and clerks and custody based salary

plan for the the correctional officers who have had a really been not getting paid what they should have been paid, and this is help bring them additional salary increases for SBI and ALE agents and a 4.5% salary increase for judicial branch employees, glad to answer any questions thank you. The gentleman from Anslow, representative Cleveland is recognized to debate the conference report. >> Thank you Mr. Speaker. In the general Government area, we provided two positions for increased aerials, aerial needs to North Carolina veteran cemeteries, and the Department of State Treasurer, we've provided funds to upgrade the core banking and authority to spend receipts for the operations of the new location on Atlantic avenue. We also provided the local government commission one position to help in assistance with local governments that need help into financial area. An additional position in the department of Insurance we provided funds for DOI's newly renovated [INAUDIBLE] building for the IT infrastructure an associated cost. We provided funds for an actuary position of a captive's/g insurance regulation program. We provided and authorized two positions for the consumer assistance group and we provided funds to make the North Carolina building code registry fully online accessible searchable and downloadable or printable I believe. The office of state Budget and Management we provided funds for positions to assist agencies to work with the connect NC bonds project and authorized funds for three positions. [BLANK_AUDIO] The offices of state auditor we provided additional funding for subject matter experts for audits. We provided funding for a security guard in the building that the auditors secretary of State and Secretary of Labor occupy. The housing finance agency we provided $ 5 million for the workforce housing loan program which would be bring up to a total of 20 million for a fiscal year. Secretary of State's office will increase the securities division staffing by six employees, four of which will be financial investigators. In the department of administration, we restored the human relations commission funding that were under continuation review and we've had it in administrative assistance position. We made changes to the youth advocacy and involvement office. We moved the youth advocacy and involvement office under the council of women and created a council for women youth involvement. We transferred 2 million from the general fund into the state land fund. And the ethics commission we provided funds for ongoing maintenance to the online filing system and provided money to build a new filing system for the ethics reports. And a state controller we restored transfer of funds from a highway funds as a controller positions for the states Human Resource and payroll system, that was another continuation review. [BLANK_AUDIO] >> The gentleman from Gaston, Representative Torbett is recognized to debate the conference report. >> Thank you Mr Speaker. Good afternoon ladies and gentlemen. Just a few moments ago you received the email, a document talking points fro conference which I'll be referring to if you like to follow along but, if you don't wanna follow along just you'll be reminded you have this available on your email. Ladies and gentlemen it was an exciting time for transportation in the last couple of years, and I like to personally thank the coach here to this committee whose effort and work on this it just couldn't have been done without them. And that is Representative Frank Iler Representative Phil Shepard, and I'd like to specially thank Representative Paul Stam as he will be leaving us and this is his last budget. Gentlemen thank you very much for your time your effort, your energy and your mindful thought directed to the people of North Carolina. Ladies and gentlemen, combined project and revenue, and I'm just gonna touch some high points so to just try to follow with me. Combine to protect revenues at [INAUDIBLE] 15 budget by 4.7%, [INAUDIBLE] FY 16 budget how we fund revenues are up 5.2% highway trust fund revenues are up 4.5%. I'm happy to announce that we have reached a resolve.

We have found a path forward for a ferry system that serves a large number of North Carolinians, it appropriates 10 million to establish a system wide reserve for all ferry vessel replacements, match federal funding to initiate for first time in passageR only service Between Hatteras and Ocracoke which will afford North Carolinians and those visiting the great state of North Carolina during the the months that are the best travel and tourism months on the other banks. It provides now a walk on service to get from Hatteras to Ocracoke. And we believe and it's proven that in other areas that it will increase the travel in tourism to our great state. So we are providing money for that that will meet the necessary federal marching money for that, and it also funds other capital improvements that have gone for while that need to be addressed in a ferry system [INAUDIBLE] This year we took a special focus on freight rail and rail crossing safety and general aviation airport development. Because anybody that understand that any airport anywhere in North Carolina is an economic engine if that is applied. So what we did is we increased recurring funding by 13.8 million to the freight rail and rail crossing safety improvement fund we're also increasing the recurring funding by 14.8 million for general aviation airport development. We also appropriated 5 days in advance to promote DMV modernization initiatives in an effort to make them more user friendly and more efficient and effective. Targeting call center response, wait time reduction and driver's licence offices and due process improvement for medical reviews. Here's another thing we did, we have heard from our division engineers that currently or prior to this year's budget, money to the division went to three buckets. And I'll explain that in just a minute as to specifically what we did. We took that money from the three buckets and combined it into one bucket. And I'll explain in just a moment. We also increased recurring funding by 32 million to the trust fund which is the strategic transportation investment fund by $32 million. Under the provisions just I was saying what we did with tolling we stabilized a funding for ferries system for reboarding.g. We will continue tolling on the current toll routes, but we prohibit future tolling on currently untoll routes except the new Harter's Oaklecode passenger route which will be the walk on ferry. We establish recurring funding for vessel replacements and funds the initiation of the Hatteras Ocracoke passenger service. We also authorized the ferry division to charge $150 priority boarding passes for only commercial vehicles. And when I say that, that means if you're a resident in North Carolina the islands you will still get the priority boarding pass as a resident, but you do not have to pay $150 and the $150 or the commercial vehicles is not a mandatory charge, it is an optional at your choosing charge. we also reserved in general maintenance used portion of the funds for litter removal. We authorized DoT to spend up to $10 million on recurring litter removal from the general maintenance reserve account. We put that under non-recurrent. We wanna see what kind of job they do and we will readdress that at the next budget session. You will find some of the nonrecurring items. That's why when we put none recurring in there, we're doing it for a purpose. We wanna make sure that it actually is working and then we will continue it .or if the funding is too much we will lower it, if it's not enough we will look at raising it. Now under the consolidation of maintenance accounts. Before there was a primary maintenance account, a secondary maintenance account and a reserve for general maintenance. There were three funds. So what that was telling our division engineers is that they had lets say one year they had a lot of primary maintenance. They only had so many dollars to use that on primary maintenance once they got to the bottom of that they couldn't do do it anymore even though they had still additional needs. So we said why don't we put all that money into one bucket division engineer the amounts needed to address all three of those, relative to total amount of money he had at his disposal. So that's exactly what we did. So this coming it will be a consolidation of primary maintenance accounts secondary maintenance account reserved for general maintenance in to one fund in order to give the greater discretion division engineers to manage their budgets to the best meet the general maintenance needs. And finally the last one I wanted to highlight was a DOT clarified authority your chief division engineers in an effort to reduce the delivery project delivery time we have granted the division

engineer the authority to kinda re-align how projects are determined. So what it does, it consolidates responsibility and oversight over all stages of a construction project under the Chief Engineer. The Chief engineer will determine which types of projects and resulting responsibility in Oversight to delegate to the 14 highway division engineers. So all that work will be compressed and done much faster, passed out in hopes that we will get an improved and a more expeditious project delivery schedule. And as always rest assured we will be consistently watching this and following suit. Hoping that things overall improve thank you very much Mr. speaker. >> The gentleman from Union representative Arch is recognized to debate the conference report. >> Thank you Mr. speaker. First I'd like to thank my colleague, representative Harris and Borough and the committee and the staff that helped us put this together very proud of this plan regarding the capital. This keeps us on track for a long term plan and commitment to be effective and efficient with our capital expenditures. This is a responsible plan that allows North Carolina to live within our means and address the missing critical projects that are are soon needed in our state, couple of the highlights I would like to point out, is that it provides 3 million in funds for the Dupont state forest recreation state facility, it provides a $6 million in funds to match 37 million dollars in federal and state fund for water resources. development projects. It provides funds to purchase land at Camp Butner for barriers to provide their own-going missing critical ideas of what our national guard needs. It provides a $8 million for a school of Madison in a joint program, that combines UNC School of Medicine and the Mountain area Health Education Center. This also provides funds for repair and renovations for the North Carolina Zoo, the Agricultural Center, The Farmers' Market, and Veterans' Center as well. Two provisions that were very happy about provides accountability regarding our debt management, we have in this budget paid off a 38 million debt for the Wemington harbor project to the federal government. And also we've put into place, provision to make sure state entities are not obligating the state in debt like arrangements and leases without prior approval from the general assembly. With that I would submit that we pass the budget. >> The gentleman from Lincoln Representative Saine is recognized to debate the conference report. >> Thank you Mr. speaker. I'll be brief but I will highlight the IT budget. Fiscal year 2016/17 for the department of information technology includes net appropriation of 43.3 million dollars. Which is flat form the prior year with exception of salary and retirement items. Highlights of the budget. Transfer of funding for DIT at a state wide reserves to an increase in transparency in the budgeting of the department. Our GDAC, Government Data Analytic Center to licence the [UNKNOWN] data analysis tool for the state Bureau of Investigation. We began a cyber security apprenticeship program for disabled veterans. We instructed the department to use its cash balance to provide a rate credit to specific agencies as we go through the transition with the department of Information Technology. We require the office state budget management to establish a general fund budget code allow OSBM to realign the information technology budgets of transferred agencies. We provide funds for the planning of new enterprise resource planning also known as ERP systems and we exempt the state controller state Bureau of Investigation state highway patrol division of emergency management for DIT oversight and consolidation, thank you Mr.Speaker. >> The gentleman from Mecklenberg Representative Browley is recognized to debate the conference report. >> Thank you Mr Speaker I am going to present the finance portion of the budget. One of the first things is we had originally discussed increasing the zero tax bracket over four years, but the conference report does it in two. We will increase the standard deduction for married couples filing jointly to 16,500 for year 2016 and to 17,500 for tax year 2017 and subsequent years putting more money and the pockets with the greater benefit going to the lower income brackets. We are reducing taxation of mill machinery by, or I guess I should

say, expanding that use over the application of the full sales tax. These are through job creating entities, such as, giving preferential tax treatment to attachments, accessories and repair parts for companies. located a ports facility for water-borne commerce, that would include unloading, processing equipment. We are also expanding the 1% $80 preferential tax treatment to secondary metals, recyclers and precious metal recyclers. This was originally in the House budget but will be prospective only would not look back. We are expanding the 1% $80 preferential tax treatment to metal fabricators for companies that have gross receipts from fabrication of metal work and access of $8 million. We are requiring the department of revenue to adopt and submit rules to the rules review commission prior to January 20th of 2017 regarding the implementation of market based sourcing. The bill also defines proposed market based sourcing apportionment concepts. Market based sourcing imposes corporate incoming franchise tax on multi state corporations based on Based on the percentage of their products and services consumed, in North Carolina, under current law, if a company provides services as their product, the taxes is imposed based on the share of their employment investment in North Carolina, it also directs that these rules will not become effective unless the general assembly, Assembly enacts the proposed market based sourcing changes so this is rule making but not yet tax changes. There were sales tax changes to simplify and rationalize the tax changes made last year, there is a grace period on tax collection from March 1st 2016 to December 31st 2016 on companies which are newly tax collectors, it allows the secretary to compromise tax liability for the period beginning January 1, 2017 and ending in December 31, 2022 this are aimed at corporations who in good Faith believed they were not supposed to collect sales tax and are later found that they should have. We are trying to clear out to make sure that similar transactions are treated the same regardless of who provides the service and exempts the following services from sales tax. Self service car wash, alteration and repair of clothing, pest control service, cleaning of real property, moving services, removal of waste from tangible personal property other than portable toilets, repairs and maintenance to real property by real property contractors within 12 months of a new structure being occupied for the first time. Landscaping, services by related members, home inspections, government imposed inspection fees and services on roads, driveways, sidewalks and parking lots. Other transactions will be considered Real property contracts and taxed accordingly meaning contractor pays the sale tax on materials purchased to fulfill the contract. Installation of underground utilities, painting or wallpapering, installation and replacement of roofing, septic tank, plumbing, electrical, commercial refrigeration, irrigation and sprinkler HVA, unit or systems also landscaping roads, driveways, parking lots, side walks, installation of listed systems, removal of items including items placed in a dumpster. Works that require a building permit while that sounds a little detailed we found out interestingly enough. that if you had alterations done to your clothes, it was considered an installation, since they inserted thread to adjust the helm. And it then became taxable, while a pure repair was not. We are trying to straighten out that kind of things where it's simpler to understand what's taxed and what isn't A direct pay permit for air planes and boats is limited to tax on the first $25,000 there is an elimination of state contribution for local sales tax redistribution that was the 17.6 whole harmless which was a Senate position but it is not required since Since tax collection exceeded the expected 82.4 million excuse me 84.8 million required for sales tax redistribution.There is a sales tax exemption for spiral phone pellets. This tax exemption is for products that are made of more than 75%. by recycled materials when products are sold for use and an accepted waist water dispersal system.

This allows towns that were using star phone pellets for waste water treatment rather than gravel, to avoid paying sales tax. Their is also and extension of 4 years to the property tax. Tax exclusion for the cornagraol/g property held by a non-profit created by the town of Gardner, this exclusion will not apply when the property is leased or sold by the non-profit. Thank you Mr. speaker I urge the acceptance of the conference report. >> The gentleman from Durham representative Marshall is recognized to debate the conference report. >> Thank you Mr. Speaker and ladies and gentlemen of the House I rise to point out a few items in this budget that make it sort of hard for me to grasp and to hold on to and I'm happy to see so many folks listening to this diatribe that's going on here this afternoon. I think I counted 22 folks on that side over there and even fewer on this side again. And the people I see there, I think if we took a vote right now we'd be able to defeat this budget [LAUGH]>>Be that as it may naturally being on the opposite side their are problems that we some problem we have identified with this budget with this adjustment to the budget that you have made. that really cause heart burn on this side. I'm gonna be general and point out to few area here, others will pick up where I saw to leave of. One of the thresh things that disturbs me is the acceleration Personal exemption bid particularly the finance portion. We thought that when it left the house at a loss of about $25 million and that that may have been a reasonable amount, but it appears as though when the Got over to the Senate, they decided that they wanted accelerated, a little bit faster than what the house really wanted do, and made that acceleration now reach the point of about $145 million in the first two years, Was into effect. Which takes out 145 Million out of the general fund budget and about two years to three years time at the rate that is going now it will amount to about 390 by 290 to $320 Million less income as You got coming in something that I haven't heard anybody really heard about. The second thing is that you took at least you cut a little bit of it but you dint cut much of the amounts funds that you put in to the rainy day fund. When it left the house we thought it was Probably it's gonna be a really rainy day with the money that you had to put in there. Some of us felt that some of that one time money that you put in a rainy fund could possibly have been used for bigger bonuses with benefits for state employees. You finally decided to give them a one half center across the board increase, we gave them a half a percent increase in bonus increase and then you gave them another one percent merit type increase which could be given out after when, anybody whose handling that money. Which means some folks will get it and some folks won't get it so it depends on whose bowing down to who to get that money. One other thing is retired personnel, when the bill left the house it left with a 1.7 6% cooler allotment for our retired state employees. These are the people who worked hard for our state that we had promised them that once they retired, because we weren't able to meet market prices so long and when they retired we would take care of them. Once the American Recovery Act came into effect and we got out of recession we began to rebuild our retirement fund. Right now we have about the third of fourth best funded retirement fund in the country. A 1.6% bonus is nothing for those people who gave the majority of their life to the work in the state,

and I'm just sorry you all didn't fight to keep the 1.6% [INAUDIBLE] rather than a 1.6% bonus. teacher pay you brag about raising the teacher pay well. When you talk about it you talk about it in terms of what you've done for a particular level of teacher pay. But you still forgot those teachers with the most experience. They are the ones who're gonna suffer from the raises that you gave there. And then, let me talk a little bit about the university budget to show you how people play with money. If you look at the budget, you go to your money report under the university system, you will see that the advancement on activity limitations was removed. This was If you remember a couple of years ago, you put a stop to schools using money for advertising and it amounted about $16.4 million. But what you in this budget is you put the $16.4, you cut it out you out the $16.4 million back in and then you took it out in a flexible cut and that's one line right off the oven here, so what did you do? you didn't need to do anything they still gonna have to take $16.4 million in that flexible cut somewhere and do something with that. The other [UNKNOWN] item you took Senate bill 873, I think it was that I guess there was a paternalistic taken with the [UNKNOWN] colleges and universities in there. Without the end of discussion with the people who were involved at all Senate bill 873 came up and it took five institutions in there and put in a $500 cap on tuition on instate students and $2500 cap from out of state students. When the fuel arose over that it got put in the budget so it says here is what we will do. We will put three schools back in there. Timbook, Western Carolina. And by the way that's first I really I heard of a majority school being a token but Western Carolina, Pembroke and [INAUDIBLE] city. Now you own the city, let me let you understand this. What you got to really understand is that this This schools this HBC use were never build to educate back forks in the state. They were build to maintain segregation. And then as time went on civil right bill was passed and it was decided that now we've got to integrate the schools. So now we don't need these schools anymore to educate black folks. So we'll make them into regional schools and sorta just do a number and during all of this time you never fully funded them. But they fooled you for instance you built ANT State University so that black folks didn't have to go to North Carolina State to get Filming and Engineering. Well it turns out that sorta backfired because We've got black astronauts coming out of ANT State University you didn't expect that, and then you took North Carolina to Central University and made it a liberal arts school so that you wouldn't have to go to UNC Chapel Hill. Well that failed too. Because you have leadership that you never thought would come out of that coming out of our school, and then the other three Winston Salem, Elizabeth City, in Febrile state, you turned them, into teachers college at that time inferior teachers college. Because you never funded them, now you're coming back now and saying well, we've integrated the whole system so we don't need these schools anymore. So why we're gonna do is we're gonna put them in a position where they don't or can't operate to their fullest extent,

and how are we gonna do this is we're gonna give them quote, a big, A big bonus and say here, and your gonna raise yours in there, your pupils in there by cutting tuition. Well, seems like to me, the best way to have done that was to put in need based scholarships. If you wanted to raise the attendance in those schools rather than putting out here something that smacks on the borders of a cheap education. So this things that have happened people are beginning to look at it and examine this budget and find out that there are distinct problems that you're shorting people where they shouldn't be shorted and that something is gonna have to be done. One thing too talking about these institutions, you didn't hope when you set up the Scholarship, when you put these three schools back in, there's no meaning in that [INAUDIBLE] Not a dime, because it does not go in effect until 20 to 2018 school year. If you were really serious about trying to do something for them, why didn't you make it effective and put the money in. Into those schools, in the 2016 - 17 school year. You put $348 million, I'm sorry, $38.4 million in the Docu program and made sure that for the next ten years they would get a total of. $10 million each year, really disseminating your public school system, you put that money in there for the [UNKNOWN] system but you didn't put any thing in for those schools that you claim you're helping, so I've got problems, I know other folks got problems it's gonna be very, Very difficult for me to push the green button. >> The Lady from Wake, Representative Gill is recognized to debate the conference report. [SOUND] >> Thank you Mr. Speaker and ladies and gentlemen. You know we've began this short session. Session it laid over a surplus that was brought about by our tax reform, but we forgot to tell the working class that it was due in part to a taxreduxtion of our most wealthy and big corporations and an increase in income tax, For some and 64 additional fees and sales taxes on services that are already taxed. Based on the budget about $74 million of that is used for funding earmarked projects we heard about raises for teachers, administrative state employees and retirees and we have to remember that this is an election year and some of our teachers administrative state employees and retirees receive an increase and some receive decreases. We need to devote the long range pay plan that will address or guarantee a leveable/g wage for all state employees, an annual cost of increase for our retiree. A salary increase that places our teachers salary at the top of the teacher pay scale. this is what our teachers, administrative state employees and retiree want and this is what they deserve Because of the great service they provide to our students and the general public, in order for our students to achieve their academic potential we cannot continue to piece mill our education program by changing the curriculum every time we introduce to a new idea Or constituents complaining about what is being taught. We should allow the experts to continue developing programs and improving curriculum that will ensure that our students will be,We should allow the experts to continue developing programs Programs and improving curriculum that will ensure that all of us students will be globally competitive upon graduation. We must also provide the resources necessary to help our students

meet their potential, instead of establishing an opportunity scholarship Which is better known as the voucher grant fund reserve, a 334.8 million, we could have tripled the additional investment and text books and digital material, as well as increased funding of other instructional material supplies and And equipment. You know we talk about warning our third graders student be able to read successfully but we could not fund reading coaches for all of our low performing schools, [UNKNOWN] it's [UNKNOWN] we were able to find bonuses for Some third grade reading teachers through what we call or you call a performance pallet program, we less remember is not just the third grade teachers who are responsible for students success in reading, but all teachers prior to Two third grade play and important part in each student reading success. The same is true for the additional bonus given to career tech and advanced placement teachers. We need to show respect and appreciation to all teachers who are instrumental. In preparing our students to be successful, by paying each teacher equally for assisting students in reaching their potential whether they teach a special need child, an average student, or the accelerated learner. When legislatures stated that That the achievement school district know as ASD is a strategy that the state should use to rescue students from chronically failing schools. This strategy will possibly rescue at most five, performing schools over a period of three to eight years. Notice I use the term possible because the study of the fist five years of ASD in Tennessee found almost no difference in students performance [INAUDIBLE] [UNKNOWN]. With this [UNKNOWN] we've heard it said many times that we just can't continue to do nothing for students in our low performing schools but folks the answer is not ASG according to research. Our North Carolina department of public has a low performing turn around program that has a proven record of success in proving low performing schools. Why are we not funding that program? If my math is correct 75 is much greater than five and the cost will be less per students than the ASD model. This program does not force districts to give up their schools to charter companies, but works side by side with teachers and administrators to improve the performance of all students in the entire district. [BLANK_AUDIO] We could have used the $74 million to fund the improvement if an additional 150 low performing schools using the earmark money. Because of this and other reasons I will be voting no on the budget. >> The gentleman from Sampson representative Bill is recognized to debate the conference report. >> You Mr. speaker and members of the house this is kinda difficult to follow Representative Mitchell talking about [UNKNOWN] so many things we could say about it, and I think they have said about everything that can be said. I just want to say that I appreciate serving on The Education Committee for the last 16 years, and most of the time we work and try to do a very good job in bringing forth the education budget. Now I would like to commend the Chairs of education here for bringing forth this budget, is not a perfect one but is been pretty good based on the money that we had to deal with,

the availability of funds, I think we could have probably gotten more funds to be available for education. Somehow, we have tried very hard and I would like to see us do that. Maybe next time we've talked about somethings we can do in the interim to probably come up with a better education program for everybody. So I'm going to just speak of a few things that people have asked me to talk about. And one is, retirement. Some of my friends back home and some of the folks that I know, retired. 25 years ago. Retirement was based on the last four years of your salary in education or work for the state. We have same very low salaries back then and some of those people are making just barely enough money to pay the co-pay on their medical costs. I want to first thank God for allowing them to live that long, and I wanna thank the medical profession also for the advances that they have made it happen by to get there. But we need to think about these people. We can't base it on the salaries that we're getting now and the salaries that we're talking about. People are gonna to get in a few days, when this budget goes into Effect. But those people who are making income teaching has not been one of those professions that paid a lot of money. So their income is based on that and it's very small income. The other thing, make this the last thing that I want to address is that I there was a cut on the amount of money central offices received across the state LEAs for central office staff. That is usually the first place that everybody will look when it comes to making cuts. To say we did the pay for this superintendent and the supervisors and all those folks at the central office. But I have news for you if you have a good reading program in the school, or good anything its going to be because you have some good people at the central office who help make these things happen. I had a professor one time, and I always quote him, that people tend to do what is expected and what is inspected. And so if you don't have some high expectations for you people. Which desperate [INAUDIBLE] people usually do to help make these high expectations and carry out the goals and objectives that they have of [INAUDIBLE]. And then somebody get back and inspect it. Those teachers are not going to perform. adequately unless somebody comes there and happens to do that. And you have supervisors who will go around to different schools and they know what is happening all over the system and they carry good ideas from one school to the other and they make these things happen. They teacher is not reading follow the [INAUDIBLE] or whatever we have there and the way they should and make sure that this happens and so we can't just [INAUDIBLE] and say we are not going to have money for Central [UNKNOWN] people get paid through These people really work all the time and then think about what we do. They always ask people to give us affirmation about what is going on, or how your schools doing. Who do you think sent that affirmation to the state department? The people at the central office. These are the ones who gather the data to send down here so that we can talk about it good or bad. So it has to come from somewhere, if it doesn't come from the central office then there's two people who are gonna have to do it at the school level, which if they do that, then you're not gonna have people who are teaching the kids like they should. So those are some things that I just wanted to mention to add on to what had already been said. And I think that we have done a good job, but we haven't done as

much as we can. Or we haven't done enough, because we all say that education is the The key through everything that we do here, to have a growing economy and to have a democracy that we all can be proud of. And so we believe that we need to put the money where our mouths are, thank you. The gentleman from Orange, Representative Meyer is recognized to debate the conference report. >> Thank you Mr. Speaker. Ladies and gentlemen I know that this budget has one big education headline and believe me my wife dedicated to North Carolina public teacher is very grateful for the big headline of the raise she's going to receive this year. I also there's some pieces of this education budget that I'm very appreciative of, because I'm very interested in education, innovation as Representative Horn pointed out. There's a lot of innovation in this budget. I'm excited to see how some of the innovative pieces of this budget work out. But it falls to me today just to enumerate The people of the state of North Carolina. Some of the pieces of this budget that continue to hurt our education system through the process of death by a thousand cuts. Once again we see another flex cut to the University of North Carolina system, bringing the total of flex cuts that have been dropped by the general assembly over the Over the last few years to $757 million. Representative Bell just talked about the cuts at central office we are now proving central officers around the state with about the same amount of funding that we provided in 1995. We have a 26 million dollar cut to community college. These based on enrollment. But in a time when we could be keeping that money in the community colleges to have innovative new programs for work force development. We cut the department of public construction by another 250,000 Dollars. The department that is said by almost everyone should have being cut to the bone already. Close to my personal heart, we cut the at risk student fund by $2.5 million. And we cut funding for after school programs by 50% in this budget. But I wanna close with just a couple of comments about the big headline of the raises. I would simply like to remind the people of North Carolina and every Teacher out there that last year, everyone who worked in the schools received a $750 bonus, and this year's raises are tabulated based on your base salary not on the total take home pay that you got with the bonus. For teachers who are moving out of their first year this year into their second year next year that means That means that actually their new salary is the exact same take home pay as they receive this year. There's no raise for them.In other places in the budget if you're being advertised to have a 4.7 % raise, subtract $750 before you figure out the actual percentages is of your raise.And for teachers [INAUDIBLE] who With 32 years of experience or more there's no raise in this budget, no raise in the budget and they lose their 750 dollars from last year's bonus which means that they'll have less pay this coming year than they took home this year we can do better. Thank you Mr. Speaker The Lady from Orange, Representative Insko is recognized to debate the conference report. >> Thank you Mr. Speaker and ladies and gentlemen of the house. I'm gonna comment briefly on the health and human services program. I'll mentions just two of the programs that I have a special interest in.in 1965 High school dropout rate was 50%, only 50% of our high school students after fur years in 1965. Now it's over 86%, so we've made a lot of progress during those years and we've done lots of things but one of the major things we did was to implement early childhood The education. That's a program that really works. In 2013 in our early childhood program we were actually serving with child care subsidy we were serving 76,000 children, we had 40000 children on the waiting list then. In like 2013 this year we have 70,000 children in the program, that's 6,000 less and we only have 20,000 people on the waiting list, which doesn't quite make sense until we realize that what we did was actually cut the eligibility. So those children we used to serve children that were That we're a higher level of 75% of the state median income which put everybody a little bit above 200% of the federal poverty level. We now serve children from up to 200% of the federal poverty level but children that go to school we don't serve that many children.

Children in five star child care centers If they are 200% of the federal poverty level so really poor. These are working parents by the way, they're not children of parents who don't work. They're actually parents going to work everyday. When they don't have childcare, they have to leave their children at home or with somebody else so That we are missing those children are only in those programs when they're eligible so if they're going now to kindergarten, not ready to start kindergarten and we're leaving those children far behind so I guess one of the things that we have, Have cut out of the program of serving enough children in our early childhood program so I hope that we will pay attention to that I know that there is a lot of growing interest in early childhood programs, I hope that next year we will put our money back into the budget and bring those programs back up to where they were and even better so that we don't have any Anyone on the waiting list, we 7300 children on the waiting list in our precade programs, those are four years old, they'll be going to kindergarten next year. Those children, 7300 children will not be in precade and they'll go into kindergarten not ready to learn and they will be a burden to our system until, They may never catch up. So we're smarter than that. One of the great privileges of being here in the general assembly is being able to solve problems, making life better, leaving the world a better place than we found it and that's really one place that we can do it is with our early childhood programs The other program that I have a special interest in of course is the mentally ill, people with mental illness, develop mental disabilities or addiction disease. We cut $152 million, this doesn't appear in the conference report because we cut it out of the budget last year so you don't see that, $152 million in state dollars that would pay for people who Don't have any insurance, they are not covered by medicaid and they they don't have private sector insurance. I'm gonna share one story with you. I know a young man who graduated from chapel hill high school who went to duke university and when he was a soft moore juniour came down with prenouid scktofrenia/g He ended up in a state institution for many years. He finally got on medication that kept him stable. He went back to Duke, he finished his Bachelors Degree, he got a Masters in social work, he got a job as a therapist. In 2008 When the crash came he lost his job and he lost his medications. He lost his health insurance and he lost his medications. He ended up back in a state institution. If we had been using this money appropiriately then he would have been able to to get his healthcare, his medications. So I have heard that we cut the 152 million because the LMEs were not using their fund balance appropriately. I'm not gonna argue with that. If they weren't using their fund balance appropriately it's our responsibility to make sure that they did. That they used that Program for that money for the people who need it. We could have expanded medicate.I'm not gonna talk about medicate expansion more, but that's another way that we can cover people who are mentally ill and don't have an insurance. So I look forward to working with you all in next year's budget that we can do better. I know we can and I know that you all are interested in doing that and I'm willing to work with you and make it better thank you. >> The gentleman from Haywood Representative Queen is recognized to debate the conference report. >> Thank you Mr speaker tell the members of the house in the conference report on thsi short session We had to correct the deficiencies of our budget. The elephant in the room the swanning at the net and swallowing the camel is that we have not done anything about medicaid expansion, yet again we lost lost two and half billion last year and we are losing. Another of our citizen tax dollars two and a half billion this year. Five billion dollars for health care for jobs. In my county of hay wood, I'm loosing 400 to 500 health care jobs. Health care jobs,primary jobs. We've lost a 138 teaching positions and teaching assistants in the last four years and that's over 500 primary jobs in my home county. And everyone of your rural counties has a similar story to tell

in North Carolina. When you lose 500 primary jobs for not expanding medication, not keeping up with the number of teachers that we need, I lose citizens we lose tax payers Dollars so this is something we just gotta get hold of. - >>Mr. speaker. Right here. >> What purposed does the gentleman from Wake representative DOllararise. >> Representative Queen you have a question. >> I will. >> The gentleman yields. >> Is the gentleman not aware that That last year we out some $8,000,000 in Maheg and again we out this dollars this year $8,000,000 in a western school of medicine. And have been pumping literally around $16,000,000 over the last Two years actually within the last year into health care and building health care infrastructure in the mountains of North Carolina. And I appreciate that. All I can say is. I'm talking about. Two and a half billion and you are talking about a million here, a million there, this is the camel we are swallowing while we are sweating than that >> Mr speaker. >> For what purpose does the gentleman from Wake arise. >> Representative Queen >> Does the gentleman wish to ask Ask not so that we can stay on task. >> He does not yield, gentleman from Haywood has the floor he may continue his remarks. >> Well whenever we loose, whenever we do not accept our citizens tax dollars to help our communities we loose this jobs that the senate don't get to care and County we've lost with those jobs, families. They've had to leave my community to find work and their children leave our schools. So I'm gonna loose another round of teachers for average daily membership drops. That's happening all over rural North Carolina and we need to Rise up and straighten this out. So, again the reason that I am most disappointing in this budget is that we have not done what we ought to do which is accept our citizens taxes to help our communities that pay those taxes. I'll say this we loose almost a half a Billion Dollars in new revenue whereby we would have to help education and every other thing from the jobs we're loosing. New tax payers, new revenue lost. Thank you. Consider This next year, this is all of an issue I know but the citizens need to remember what's happened. >> The lady from Wake Representative Adcock is recognized to debate the conference report. >> Thank you Mr speaker in my day to day life as a nurse practitioner I work a lot with patients who have chronic illnesses and part of our work together is to talk about the things they are doing well. The things they can improve on and that's why I stand to speak about the conference report. On behalf of the board and 200,000 citizens in my district. Who depend on the Jordan lake water shed for their drinking water. I must express disappointment in section 14.13 of the conference budget. It delays scheduled steps to clean up reservoir, calls for additional studies of cost and benefit be finished 2019 launches additional stakeholders process to renegotiate the rules in December 2016 and requires the state regulated. again readopting a new edition of the rules in 2019. But it also seems to say in 14.13F that pollution added by development between 2013 and 2020 will never be the responsibility of anyone to clean up. Local governments may not require that developers control that pollution through local ordinances and local governments that already have strong ordinances must repel them. With these provisions 14.13f creates a conflict between state law and the Federal clean water act and shoves cities and counties into the middle of that breach. The Jordan's provisions in this conference do not protect water quality in the lake, do not protect downstream users and place local government throughout the water shed in an impossible position. The commerce report commits another $1.3 million to study and prove

in quotes, in lake treatment technologies for water pollution. Technologies that the environmental management commission concluded earlier this spring that aren't likely to work, and cannot substitute for the upstream pollution controls that 14.13 blocks and delays. Because of the many commendable things contained in all sections of the conference budget, section 14.13 is truly disappointing by comparison, thank you. [BLANK_AUDIO] >> And the Chair has been advised as General from Haywood, represented Queen has asked to speak a second time. I have. >> The gentleman is recognized. >> The other item in this conference report that falls short of the needs of this state is the infrastructure of broadband we sent over the governors budget had nothing in it for broad band expansion. The house budget had a million dollar study. We have studied this since I have been down here in 2003. What we know everyone in this room is we need last mile broad as public policy of this state. What have we done we've got a couple of pet projects in here for half a million dollars. So nickle and dime here, nickle and dime there, we need to get on with extending high speed Internet to every citizen in this state for healthcare, for education, for economic development for call savings, for smart seas resilient communities. We need to get on with broadband expansion for everybody. Thank you. [BLANK_AUDIO] >> And the lady from Guilford Representative Harrison is recognized Recognized to debate the conference support. >> Thank you Mr. Speaker. I wanted to get crack what kind is due. I think the egg in your chairs did a really terrific job of working with, the members and listening to us and letting us an offer and support our members. So I appreciate that including Putting the healthy corner store funding.So I'm grateful for that, I'm grateful for the extra conservation funding.I give credit again to [UNKNOWN] and the big chairs for that.So I wanted to point that out because that's very important.Those funds have taken a hit especially [UNKNOWN] fund and I want them to get credit for putting their money back in. I share Representative Icox's concerns about the budget provision relating to Jordan might [UNKNOWN] We had a policy on the house side that we were gonna put in the policy provisions in the budget and this continue robox for the protections that this body enacted to protect the important order drinking To and like pay back to I think 2007. And part of that there was decade of more stakeholder on inputs. So I just think in doing it this way is really bad policy and I wish I could vote for this project but I think between this and a couple of the exe case revisions, I'm going to have to be a No, but do wanna thank those who put that in front in for anywhere Anyway thank you. >> The gentleman from Durham Representative Luebke is recognized to debate the [INAUDIBLE] report. >> Thank you Mr. Speaker, members of the house. I rise to comment on the tax portion of the Finance portion of the budget and I think everybody knows that working on finance issues is really something that is not very popular. 90 members of this house are on appropriations, 30 are on finance, as I recall in all my years years its been that same ratio. Just a few of us really like to dig in to the finance. But when you dig into the finance you find that there are just problems in this budget which are based on decision that were made starting especially in 2014 and I And I'm talking generally about a decision that was made and is conscious, and this time the chairs are open about it. That the state should move away from income tax on people, and tour the sales tax. Now this commitment to try to eliminate the income tax Tax and rely more and more on the sales tax. This happening even though we have discussed many times on this floor how the income taxes are fair way to tax people than the sales tax yet in this budget, and in other budgets, we are raising,

If you note on page five for example in the budget, we're raising money from sales tax we're reducing linkon tax. And if you look at what happened over the last five years, And I'm just gonna read out very quickly semedated from the Physical Research Division. Listen up to on this please. 1. $1 billion cuts in income tax, personal income tax. $501 million cuts in the corporate income tax. And when we come to the sales tax guess what happens? It's not a tax cut although it's general conversation about tax cuts over the years. When we look at the sales tax we find the sales tax is gone Gone up 663 million dollars, so its just really not fair to have a tax system that is so geared toward cutting income tax as personal incorporate and then increasing the sales tax and >> Mr speaker. >> I do not yield The gentleman from Durham continues to have the floor. >> And when we do this many have advocated who are for this switch to the sale taxes so well it's okay it's far for everybody. Everybody pays the same rate and we are taxing everyone and wanna talk about this new. Taxes and services in just a moment, but I did wanna draw anybodies attention to page 232 and I know you are not seating their with budget in hand. But if you will look at page 232 at some point, lines 34 to 48 you'll find and extraordinary example of tax and fairness. You may remember during our budget debate that I had an amendment that would make sure that the tax on yacht and airplanes was the same as the tax on automobiles. And yacht owners would pay the same as people buying little fishing boats. And you may remember Remembered that that amendment was tabled. Well, much to my surprise as I look at the, so that the tax break remained. Much to my surprise as I was looking through budget we found that the yacht and the aircraft owners, again have gotten some help from this budget And I don't think really that most of you on that side of the isle, or most of us on this side of the isle really approve of this. And what it is, if you'll check it out on page 232, is that when there are maintenance and other repairs to a yacht or to Or to an aeroplain. Those repairs and maintenance are caped at $25,000 so no mater how expensive your aeroplane how expensive your Yacht, your expanses are caped to $25000 yet everyone. [UNKNOWN] non repairs on the labour. There is no [UNKNOWN] but we've put a cap on boats and aeroplanes and I think it sends a bad message but it sends an accurate message about some of the problems with the tax policy that [UNKNOWN] to this budget. I would also point out that as you increase the sales tax on services, shows $22 million here in the budget, I asked staff how many business are affected by this and I was told that it would be up to 30,000 business that would have to collect sales taxes and further, that don't, Collected now. And further that these are mostly small businesses who are caught up in some of the fine points of extending the sales tax on services. So there is small businesses and they're being hit by this. I don't think any of us in here , majority of us really wants that. Yet that's where The tax. That's where the budget is going inn terms of the tax side of the budget. And this just is to be wrong and I think we should all think about it and talk about it more. It's a topic that doesn't get discussed and when we talk about only the tax cuts on the one side and don't talk about How about the tax increases, the we are just not being telling the whole story to the people of North Carolina. And you may wonder this is one additional point because it is important to have same data. And let me just express to you. Showed me on, gave me in terms of what has happened as a consequence of the 2013 tax breaks. What they said first of all is of the $1.3 billion in tax breaks on income tax quarter of those breaks,

one quarter of the tax breaks income tax breaks go to millionaires, one quarter of the income tax breaks go to millionaires, think about that. And so I asked the staff welll tell me how much per year that averaged out to, for millionaires, and it turns out that since the 2013 tax laws, the average millionaire in our state received a refund in addition to what it they had previously increased in other words how much did their tax bill go down. $36,300. So the average millionaire got a tax break of $36,300 people making $40,000 who knows. Representative Lewis and I, I remember debating this, had this discussion several years ago and I think we remember that people on the lower end got a tax cut of 50, 40, $50, and here we have $36,000 for millionaires. This isn't right, this is tax unfairness. And when you do that, especially when you put the focus on millionaires and tax breaks for them, you are taking money out of the budget potential money out of the budget. Availability as the phrase goes down. And so my colleagues have talked about needs in education mental health, pre-K education, child care tax credit, all of those programs are smaller than they need to be. Representative Ballebard/g Central Office staff, nobody thinks about central office staff and yet if we had not had the massive cuts that we did provide to people at the top, there would be more money for those things. And again I say with that, I think the majority of us would rather that there would be more money, for central office staff. But we don't have it because the budget is based on two little money, it sells the people of North Carolina short. And that's just no right. And when you give people more raises it of course spins off into the economy there is the whole ripple effect. And more generally its an underlying philosophy that I think everyone should re-think as it plays itself out. I understand it as philosophy, but I don't understand how its defensible when you give $36,000 per millionaire and the you don't have enough money for certain programs.That's the trade off. You cut excessively for those at the top, you have less programs. And finally I would remind us, that as we move forward please watch how the sales tax goes up The number of small business are hit by it the number of consumers are hit by it. We should not be doing that. When I was a finance chair, way back when was that? just 2010, but my point was this when we talked about expanding the sales tax to citizens which is what's happening right now. Our line was that you should widen the base and lower the weight. So that now as more services are being taxed, we find the rate stays the same. And that's not right because what that does is keep the burden, shift the burden more to working families, and it just shouldn't be that way. If we're gonna expand the services we need to lower the rate and if you lower the rate then you really do have to raise the income tax back up to To what we once had to people making more than a million dollars, I just think there's nothing wrong with millionaires, they just need to pay their fair share, and they're no paying it now. Thank you very much. >>The gentleman from Cumberland Representative Szoka is recognized to debate the conference report. >> Thank you Mr. Speaker, I'm gonan keep my comments. >> Mr speaker. >> For what purpose does the gentleman Durham representative Hall rise? >> The gentleman was going to remind the speaker that he was the closing argument for the Democratic side. The chair was advised that the gentleman from Durham wish to speak second to last, but their were other members that wish to speak the chair has the gentleman's name. The chair thinks the gentleman the gentleman from Cumberland has the floor to debate the conference report. >> Thank you Mr. Speaker. Numbers can be a funny thing sometimes, two people can look at the same number. draw different conclusions. You can look at percentages and you can play games with numbers

and when you come to all kinds of different conclusions. I just like the to make a couple of clarifications here and what we did in the finance packages this year. Make no mistake that this was tax relief for the middle class. This was not tax relief for millionaires. This was tax relief for the middle class. Over the next two years will increase to zero income tax bracket by $2000. That is very, very significant. That doesn't affect millionaires, doesn't anybody else. When you're talking about millionaires, that actually pay 70% of the income tax. So when we 're playing this games of numbers and you look at the numbers and if you look at the percentages that they pay and the effective rates that the millionaires pay compared to all of us in the rest of the middle class their effective rate is much, much higher. Representative Luebke did mention one thing that that was up to 30,000 small businesses could have been impacted and what he's referring to as a comment I made in a Finance committee one morning. But that was before we conferenced the tax package and I am happy to tell you and after that conference that we are nowhere near that numbers. As a matter of fact the department of Revenue was unable to give me an estimate even a soft estimate on the number of new, businesses that would have to collect, sales tax because they couldn't really figure out it was so small. So we did in fact take care of that in the conference. Expanding the sales tax services yes we did do that. We fixed some of the misinterpretations that were there from last year and some of the mixed messages the department of Revenue had put out, even though they made the best effort on that,they were still some incongruities to that. And I do go over that in the Finance when we were talking about that and in our conferences with the senate we took care of the overwhelming majority of those. So now the guidance to the department of Revenues is very clear, business is doing the same business such as installing flooring, they'll be treated the same. Which is what we do when we have our tax policy. We strive to have, all tax payers treated equally. So what do we do, we focused our tax policy using the burden on the middle class through raising the zero income tax rate, we cleared up the incongruities that came about as we did extend the days. And I think we really did a good job of taking care of all businesses, to making sure that they're all treated fairly and equitably and with special impact looking at small businesses to make sure that they were not unduly impacted by anything that we were doing. I would recommend the [INAUDIBLE] voted to, thank you. >> The gentleman from Henderson Representative McGrady is recognized to debate the conference report. >> Thank you Mr. Speaker. I wanna respond to my colleagues I guess from Wake and Guilford regarding the so called the nuclear management provisioned in the budget, this relates normally to Jordan Lake and Falls Lake and I would say to you that one compares the Senate budget provision With budget provision in the conference report even if you don't like what's in the conference report you've gotta say we are in a much better place than we were with Senate provision. It obviously takes two to reach an agreement and compromises her struck the Often to report provision is much narrower than the Senate provision was and it only relates to Jordan Lake and to Falls Lake which is a huge improvement. We got no money for muscles. I was so looking forward to the muscles but there's no money Money in the budget directed that sort of thing which for me is reminisce of solar bees and if you remember oppose that and has proved not to work and I didn't think the various solutions at the Senate had put in the budget Or likely to work either. It's not clear that the money set aside for the falls lake fix will ultimately be approved by DEQ and if it isn't then money will come back to the clean water management trust fund and the money's last, From the Solar Bees project is coming back to the clean water management trust fund.

Those are all very positive parts of this provision that weren't there before. We obviously need to continue to study the issues There maybe scientific ways of dealing with the pollution in those lakes and in other lakes and rivers and so there is enough significant money put towards that and I will continue to argue as would my colleague and Wake to wallowing/g back the join lake/g rules for example and probably not the right thing to do. But as I referenced when I started to speak the budget is [UNKNOWN] compromises, this was one piece that the Senate was absolutely unwilling to compromise on and so we worked through to get to the best place, I was capable of getting and that's where we ended up. So I just wanted to give that explanation to my two Who I share a lot in the way of values and just tell you I'll continue to stay on point. [BLANK_AUDIO] >> Members for your planning purposes there are six and a half minutes remaining that Representative Dollar has To allocate in 8 minutes and 28 seconds for minority Cleaver Hall. >> For what purpose does the Senator from Walker [UNKNOWN] arise. >> To speak on the report. >> The gentleman has the floor to debate the report. >> Members of the house I'd like to take just a minute to refresh our memory of the History of the sales tax, the gentleman from Durham discussed it at great length. in 2011, we reduced the weight of the sales tax from seven and three quarters to six and three quarters, a 16% reduction. Nobody thought we could do it. Governor Perdue vetoed the bill because we didn't. We didn't extend the higher sales tax and as a result beginning that year we were collecting a billion dollars less per year in sales tax, even with all the add on's this year in the fiscal year that will end today, tonight the estimated reduction in sales Sales tax is about 650 million.So the argument that we've increased sales tax is not true.We decreased it.We just in this year decreased it less than previous. In [UNKNOWN] with the accumulated amount of the reduction is about 4.7 $ 7 Billion. In contrast in the previous decade when the gentleman from Durham was the senior chair for [UNKNOWN] 2001,2002 it went up under his leadership. In 2003 it went up a penny. In 2005 it maintained for that decade For an additional approximately $4 or 5 billion of sales tax inflicted upon the poor.>> Members, before the Chair recognizes the gentleman from Durham, are there other members in the minority party or ++Other members wishing to speak against the motion to adopt the conference report, seeing none is the chair's intent to recognize the gentleman from Durham and then the gentleman from Wake. The gentleman from Durham Representative Hall is recognized to debate the conference report. Speaker and members of the house you know it's very interesting I received a lot of encouragement on the remarks I might make on the day on the budget, some people told me they could probably write remarks for me. Some people told told me they already knew what remarks were, got a lot of advice and assistance on that, but I do wanna kinda take us back because it maybe that we are taking for granted the responsibility we have and who that responsibility is to, and so i just wanna take some off your back if you kinda close your eyes just clear your mind and think about the oath you took that said That I will be faithful and bear true allegiance to the State of North Carolina, now you notice I didn't say their true allegiance to myself, my private projects, my best friend, and said to the state of North Carolina, and that I will Well and truly execute the duties of the office to the best of my skill and ability. So we don't wanna get complacent about what our duty is down here.

We don't wanna forget what our oath was and don't wanna forget what we are supposed to be doing, and I guess you would say well Why is that, we clearly we know this is an election year and that's going to color our conduct at least that would hopefully would be the excuse we would use as opposed to what it appears to be now. You know often times I would say I wanna challenge you and I hope you could do better and I'm not Say that at this time. Now some folks say keep hope alive, well that hope is sailed. That ship has sailed. That hope is gone for us right now. I kinda understand now. As I said an election year budget when we had twice the surplus, it wasn't an election year We didn't make an effort to do the things we've done in this budget. But now it's an election year [BLANK_AUDIO] all of a sudden we have the ability to look at our issues and try to devote more resources to them. But I understand now, it's something called the Stockholm Syndrome. And that's where you become a prisoner in this case of yourself. And instead of working to try to do the best we could to be faithful, and bear true allegiance to the state of North Carolina. We appear to have succumbed to some bad habits and some bad results. And so you know in Stockholm syndrome people have positive feelings toward their captors. And of course that again is our sales, and our values, and our sense of duty. And then we become folks who identify with our captors. Even though we know this in our worst interests. And you say, well, why would you compare this to Stockholm syndrome? The process we use for this budget and you think about it, 87 year marks. Now if we're gonna budget by year marks, you've got 87 year marks, I've got about five pages of them. But what' important I don't have time to read them and maybe thankfully so I'll try to make sure anybodies needs copies of them I'll try to get out to you, and make sure you know what they are are why that's not the way to write a budget via year mark. And then you say well 87 year mark what does that mean? Why do we care? $74 million is why we care. And then, what corrosive effect does that have on our budget process. It's almost like the Oprah show. You got a year mark, you got a year mark, you got a year mark. Everybody's got a year mark if you're in the right position in the hierarchy and if you're not, then you didn't get an ear mark, you gotta go through the regular process. One of the most disturbing things and I say this as an election year budget. One of the most disturbing things I see and you can see it on page 198 on your budget, section, 36 16A . That we're gonna get this one half of 1% one time bonus. This is an election year budget now. Right? We know when the election is. Well guess when this bonus is supposed to show up in the mailbox? October. Well fancy that. Let me see I got to my mail box I'm considering voting I get some check from somebody who wants me to vote for him. Now if we had the board of election regulations they would prohibit that kind of conduct. I couldn't send a check to somebody and say look I'm sending you a check you need to vote for me, I'm the good guy, and I gave you a check. We couldn't do that and so we have to really guard the principles by which we budget number one and number two, if we're really concerned about elections, avoid the appearance that we're somehow trying to buy those elections. We don't wanna do that, we don't wanna create, that perception, and I think that is certainly a responsibility of this body. Finally I wanna talk about the poverty expansion cuz I think I'm running out of time and I'm sure I'll be hearing a bell dinging in a minute. You know what they say ask not for whom the bill told. But poverty expansion in North Carolina. 47 counties having populations of an excess of 16% living in poverty, and you heard this from me before the last time we went through this budget. Now we're up to 70 plus counties who have populations in excess of 16% again. Not Durham county. we couldn't constitute 75 counties. So whether you admit it or not. I heard my colleague form Cumberland County say you can look at figures when you look at those figures of the increased counties

who now have larger poverty populations you can spin it you can do whatever you wanna do go to those communities, they have to be some of our communities in here. We haven't done what we need to do to help those North Carolinians that we owe that responsibility to be faithful and bear truth, faith and allegiance to North Carolina. So I'm not gonna say you could do better. I think until we free ourselves from imprisonment of our philosophy this is what will continue to get North Carolina. I rest that you vote against the Bill. Thank you. >> The gentleman from Wake, Representative Dollar is recognized to debate the a second time. >> Thank you Mr. Speaker and members of the house. Now budgets are about priorities and about values. If you value teachers, vote for this budget. That's where we're putting the money, that's where we're putting raises If you value state employees, that work hard for the citizens of this state everyday, vote for this budget. 62% two thirds of all the recurring money that we have available this year are going to salary and raises. If you do believe that we need to do more for children, for the fair and elderly, for those who are suffering mentally illness, for families who have children and adults with intellectual and developmental disabilities, then vote for this budget, because that's where we're putting money If you believe that we must continue to invest in our states infrastructure for jobs and for the health of our community, those funds are in this budget, vote for it. If you believe in strong budgeting that puts aside money for the future, in this case in record amounts you should vote for this budget. If you believe that working families and wage earners deserve more more money in their purses and in their pockets vote for this budget. If these are your values, teachers, state employees, the most vulnerable among us, strong budgets, infrastructure, allowing working families to keep more of what they earn. If these are your values, I ask ask every member in this great institution, this house to vote for this budget. Thank you. >> [BLANK_AUDIO] It appear to be no further speakers, the chair is about to put the questions to the body but recognizing their a number of folks outside the chamber The house will stand at ease just a moment. [BLANK_AUDIO] [BLANK AUDIO] [BLANK_AUDIO] The question before the house is the adoption of the conference report for House Bill 1030 on the second reading. Those in favor will vote aye, those opposed will vote no. The Clerk will open the vote. [BLANK_AUDIO] [BLANK_AUDIO] The Clerk will lock the machine and record the vote. 92 having voted in the affirmative and 23 in the negative, the conference report for House Bill 1030 passes its second reading and remains the calendar. House bill 1074 the clerk will read. [BLANK_AUDIO] has the clerk read the bill?

The clerk will read the bill please. >> Representatives Hager, Bryan, Jeter, and Burr, House Bill 1074 an act to be entitled require that public schools and childcare facilities in North Carolina be permitted for construction prior to January first 1987. And test drinking water for the presence of lead. General Assembly of North Carolina enacts. >> For what purpose does the gentleman from Rutherford, Representative Hager rise? >> For a motion Mr. Speaker. >> The gentleman is recognized for a motion. >> I like to make a motion to move this bill to the end of the days calendar. >> Without objection so ordered, for what purpose does the gentleman from Buck representative Blackwell rise? >> Thank you Mr. Speaker I need to move that the house to reconsider the vote by which we approve the conference report yesterday on House Bill 561. >> The gentleman is recognized for that motion and the gentleman has the floor to debate the motion. >> Thank you Mr. Speaker. Ladies and gentlemen in the house, this is sort of an intentional error that was made in preparing the conference report One small change in the house, subpoenas were approved for issuance by school boards was omitted from the conference report that we approved yesterday. So therefore if the house would join in me in voting yes to reconsider and then we'll withdraw that conference report and there is a replacement conference report at the desk, which I will then move that we approve. So at this point I would ask the House to vote yes to reconsider our vote of yesterday on House Bill Bill 561 conference report. >> For the discussion for the debate? If not the question for the house is the motion to reconsider the vote by which the conference report the house bill 561 was adopted. Those in favor will vote aye. Those opposed will vote no.The Clerk will open the vote. [BLANK_AUDIO] [BLANK_AUDIO] Representative Richardson, Representative Graham wish to record. Clerk will lock the machine and record the vote. 113 have voted in the affirmative No in the negative, the motion to re-consider the adoption of the conference report has been adopted. Does the gentleman wish to withdraw the conference report. >> Yes sir I do. >> The conference report will be returned to the gentleman, does the gentleman wish to send fourth an additional conference report? >> Yes sir I do. >> The gentleman is recognized to send forth the revised conference conference report the clerk will read. >> [BLANK_AUDIO] The conferees report to resolve the difference between the Senate and the House of Representatives on House Bill 561 a bill to be entitled an Act to Modify the Authority of the School System to Provide Legal Proceedings and Investigations Committee substitute favorable for 1515 the following report. The General Assembly of North Carolina enacts. >> And without objection the conference report is added to today's calendar for immediate consideration. If none, so ordered. The Clerk will read. >> The conferees report to resolve the difference between the senate and the house of representatives on house bill 561. A bill to be entitled an act to modify the authority of school system with regard to legal proceedings and investigations committee substitute favorable for 1515 submits the following report. The general assembly of North Carolina enacts. >> The gentleman is recognized to discuss the conference report. >> Mr speaker this is a mater of Is a matter I just described to the house. I would ask the house to vote yes to adopt the revised conference report that is now before the house. >> Further discussion, further debate? If not those in favor will vote Aye, those opposed vote no,cork we'll open the vote. [BLANK AUDIO] Representative Warren, does the gentleman wish to vote and Representative Bobby Richardson I see you on the floor? No. The clerk will lock the machine and record the, vote. 114 having voted in the affirmative and none to the negative the conference report to House Bill 561 is adopted and the senate will be so notified. House Bill 630, the court will read [BLANK_AUDIO] Representative Gilber House Bill 630 a bill to be entitled an act of required coal combustion residual and empowerment's over to provide permanent alternative water supplies for residence and areas surrounding coal combustion residual service empowerment, repeal statutory provisions related to coal ash management. Commission to modify closure requirements and coal combustion residuals

and surface implements under the coal action management act of 2014 and to modify appointments of the mining commission and all in gas commission General Assembly of North Carolina enacts. >> For what purpose does the gentleman from Union Representative Arp rise? To ask for staff to assist on the floor. >> The chair will grant that. >> And to speak on the bill. >> The gentleman has the floor to debate the bill. >> Ladies and gentlemen, two things I know for sure, some North Carolina citizens are already on the piece of mind waiting for Permanent safe drinking water, and we're still here talking about it. The public hate governmental grid lock, while the public hangs in the balance, this compromise plan House bill 630 drinking water protection and coal ash clean up act is a compromised plan that moves forward, protecting all North Carolina citizens. This compromised plan ensures the public safety of all North Carolinians and our environment and precious natural resources while not jeopardizing the economic and security health of any North Carolina citizen. What this plan does is require Duke Energy to provide a permanent source of safe drinking water by the fall of 2018 to every resident within half a mile radius Of coal ash pond and any other areas predicted to be an impacted areas based on a geological and hydrological effect. It requires Duke Energy to ensure why wise ponds are promptly completed. And it requires that Duke Energy bill recycling center at three coal ash sites for which to allow coal ash to be beneficially reused in the construction trade and the other technological advances. I'm a structural engineer and we use coal ash in structural concrete, in structural field for road and so forth . And this requires the beneficial use of a material that we are trying to dispose off properly. This bill also requires Duke Energy to excavate three additional sites, Lee, Capefee and Weatherstrip, they have been subject to law suits being a total of seven of 14 sites that would be excavated and removed. This give final authority to determine how the seven remaining coal ash sites are closed based upon the technical expertise of scientist and engineers left up at the direction of the secretary of department environmental quality. This is the compromise in that the coal ash management commission will not be reconstituted but those decisions will be left with secretary of DEQ. However moving forward the oil and gas and mining commissions will be set up according to the compromised plan between executive brands and the legislature. What I wanted to do is briefly go over the differences in this bill between senate bills 71 and and house bill 630. Regarding the classifications and closure of the four priority sites. All four sites remain closed in both senate bill 71 and 630. Additionally there are three intermediate sites that will close and remain intermediate and will be fully excavated. The provisions for alternative permanent water to the plant under Senate Bill 71 required that a plan be adopted by 10117 to enter into a binding agreement with DEQ. The improvement is that this Bill, House Bill 630 mandates that by October 15th of 2018, permanent water supplies shall be provided to all plant neighbors within a half mile radius and continued To supply temporary water until that process is done. And then finally the supervision of the closure. Instead of reconstituting the Coal Ash commission, this empowers the secretary of DEQ to make the determination once the provisions for water and dam safety has been improved it provides the secretary

of DEQ to determine the most feasible economic and beneficial closure of the remaining Coal Ash plants. Thank you Mr. Speaker. I ask for your support. >> Does the gentleman move that the house do concur? >> Yes, I forgot about that. I move that we concur. >> And the gentleman did debate in an excellent manner the motion to concur is actually on the floor. For what purpose does the lady from Guiford Representative Harrison rise? to debate the motion. >> The lady is recognized to debate the motion. >> Thank you Mr speaker ladies and gentleman for the house. I just wanted to remind you that in 2014 we pass the strongest coal ash management legislation in the country. And it had a number of important protections including establishing this oversight commission. Which seemed important to this body because our governor had 29 years with Duke Energy and we thought we need the independence of the coal ash management commission. A few week ago we confirmed the importance of that oversight, which is why I supported the legislation even though it established more delays in senate bill 71. This bill which is described as a compromise but I think is a compromise that was developed between Duke the governor DEQ and the senate, and no environmentalist no public health advocates, and as far as I can tell no one from the house. This bill eliminates over sight and turns those clean up over to DQ. This is the same DQ that pressured. Department of Health and Human Services to resend those water advisory letter to the residents near coal ash ponds. Those orders had significantly high levels of [UNKNOWN] which is a know carcinogenic in their drinking water. This is the same DEQ that several weeks ago classified all remaining ponds associated with the seven power plants, as an Immediate risk meaning they would have to be excavated. But the bill eliminates that intermediate classification and all the rest classifications in the Coastal area management act. And those risk classifications were designed to protect the public health and the natural resources and our environmental resources, and so this bill allows all ponds remaining ponds to be labelled as low risk. If water has been supplied to neighbors within half a mile compliance boundary and the structural dam issues have been addressed. There will be no further protections. That means that the only ponds that are gonna be cleaned up are going to be required to be cleaned up or the pond the ponds that are associated with the seven sites, that are already required to be cleaned up, according to the statute that we passed in 2014. And the three sites that were the subject of the court negotiations. So, those seven sites are already covered and required to be cleaned up. So that's a little redundant to mention that in the legislation. So that means that we have these remaining ponds that may be kept in place, now why is this important? Because when we cap in place the toxins and contaminants continue to leach from these coal ash ponds into adjacent ground water and surface water. Those toxins and contaminants include [UNKNOWN], lead, [UNKNOWN], Thallium, lead, [INAUDIBLE]. These are known carcinogens and neurotoxicants. And I have left on your desk a couple of reports. One, is an odor report that was based on a EPA study that was a cancer risk. associated with coal ash ponds and the other is more recent its a Duke professor's study on toxics leaking from coal ash ponds into adjacent ground waters and surface waters. And I think its important that what this means is this is going to be a problem for decades and perhaps century to come. [That this coal ash continue to leach into the ground water and surface water. So yes we will be providing drinking water to these individuals but that does not account for the environmental damage it comes from these continued leaching of toxins and contaminants. Now many of you we all had this map on our desk in 2014 and I have extras if you wanna see it now. But this have the coal ash and [INAUDIBLE] locations across North Carolina associated with coal fire power plants. And then it has the municipal water intakes and if you looked at the short Mecklenberg area and live there you would be quite concerned about the significant amount of water that would be impacted by this decision. And this affect all of us across the state, we are actually Greensboro is in good shape, but many of you across the state will be negatively impacted by this legislation. I think it's a problem and it's a continued health risk for those living nearby or down stream.

And especially for those whose municipal water supplies are affected by the upstream impediments. As I understand that cost had been cited as a reason for this legislation and in a recent SCC filing. Duke predicted that the total clean cost of coal ash associated with their existing coal-fire power plants was $68 billion in total. Duke has already spent $4.5 billion, so the remainder is anywhere from 1.5 to 4 billion, that's no where near the 10 billion to the 15 billion that you all I think you've heard floated around this chamber. And there're many of us who feel like the Duke share holders and not the rent payer should be paying that cost and many of us feel strongly about that. In addition, there's a memo from the institute for Energy Economics and Financial Analysis, that indicated the Duke had actually absorbed the cost of the full cleanup given the recent rate increases and they won't need to seek another rate increase. So I don't think you should let calls come in as a factor to drive your vote for this concurrence. And even if it works, at what point do we sacrifice public health for cost? I just don't think that's a fair trade. So I supported senate bill 71 because I thought it was really important that we maintain the coal ash commission oversight. I think we needed the independence. I don't think DEQ has given us a lot of confidence that it's mission is to protect the public health of North Carolina citizens. And while there are two very good provisions in this bill that Representative Arp cited, the water supply piece and the beneficial reuse, I don't think when you weight it with the the remainder of the bill that is very problematic. That is I think it come out that we are risking the health of our public and unnatural resources, and I urge you to vote No on Mr. Speaker. >> What purpose does the legacy seek recognition? >> I was wondering if I could ask Representative McGrady a question please. >> Does the gentleman from Henderson yield to the lady from Guilford? [BLANK_AUDIO] >> Since its the lady from Guilford who supported Senate Bill 71, yes. >> He yields. >> Thank you Mr. Speaker and thank you Representative McGrady. You were the sponsor of the 2014 legislation and you carried this in bill 71 and that you stressed the importance of the over sight that you thought the coal ash management commission can provide. And you also stressed the issue about this one size fits all nature been inappropriate for clean up. And I'm just wondering how you feel about that now. >>Well, if you're asking me sort of what the positives and negatives are. I guess that this bill is strong in terms of it provides water, piped water, clean water to all of the households that we believe are being affected by the coal ash basins. It includes the [UNKNOWN] amendment in senate Bill 71. So that protection could be expanded to other whose water might be polluted, and it's an improvement on the beneficial use side if you remember when we debated senate bill 71 there were amendments on that and I believe, this bill was an improvement of senate bill 71 in that regard. My concern with the bill is one I guess that it strikes out the various structures that were in the original bill back in 2014 And once water is provided and there's the damn safety issues taken care of all of the remaining [INAUDIBLE] will be automatically reclassified, so there's no review it's just automatic and so what we've done here Done here is really adopt a one size fit all approach and that was actually the opposite of what we did in 2014.Some of us on this side of the aisle, have probably still the scars of that fight because there were those who wanted everything dug up and we We decided not and now we sort of gone in the other direction and in fact did I guess its two size fits all.We're either gonna dig them up or we're gonna keep them in place and that's problematical. And I'd nod I guess because I've looked at the application of the bill. The seven sites that are going to be Going to be dug up for all. That's nothing new, we put part of those in the original bill and the other three are already a subject of a law suit and a settlement agreement. So that's not a positive, that's just reflecting reality. The other seven sites, I believe, are all the larger sites in the state. And that just gives me pause. That we're going to apparently automatically classify all of those large coal ash basins as low risk and therefore more likely than

not kept in place. I Hope I've been responsive I probable Probably said too much. >> Thank you.I think that's to helpful insight- >> Is the lady wishing to continue debating- >> I'm happy too,I'm sorry- >> The lady has the floor.- >> Thank you Mr. speaker I think that's helpful insight from the person probably knows more about this than anyone else in this chamber.I think this proposal disregards the 8,000 North Carolinians who wrote comments during the Hearings that wanted this course mood. As I contend that we're sacrificing the public's health and I think this is a bad bill. So I encourage you that not to concur. Thank you. >> For what purpose does the general from Perstone Representative Vioga arise. >> To debate the bill. >> The gentleman has Someone has the forward to debate the motion. >> I was just gonna talk about coal and ash but we could talk a little bit about how far we've come in cleaning up the power plants in general. I've been living in the shadow of one of the larger plants for the last 25 years. 25 years ago is not unusual at all to get up in the morning and seek coal ash all over your yard at the wipe get off the wind shield of your car it's loaded in the lake, we swim in it, we didn't worry about coal ash those days [INAUDIBLE] was also famous as being one of the biggest sources of the sulfuric acid. That was later go on to become the acid rain, And it was more than sulphuric acid that came out of those stacks. They were loaded with mercury and cadnium and all the other bad components that used to just go up in the bad smoke. Of course now we have scrobbers on there and the only thing that comes out is steam. The sulfuric acid is turned into calcium sulphate or gypsum and its turned into wall board. So we come along way cleaning that part out of it up, and we are making significant progress on the coal ash. So here we are adjusting the coal ash act again. And I've got news it will not be unusual to do this over and over again. This is not an issue that we will fix and have go away. For almost a century this coal ash has been pilling up and then a few years ago the storm water pipe busted and coal ash became a big problem. The state of North Carolina acted quickly the EPA acted the coal ash is going to be. Dealt with, we've found some new problems like the drinking water, and the dams and we're going to fix them, we're learning better ways to deal with these empowerments. Everyone that uses electricity and that's a lot of people, are going to spend some money, and that is a lot of money to deal with a coal ash and a lot of people that see this problem of money as an opportunity. In my little circle of friends, there are a few people working on ways to use the coal ash and earn some of that money. I know that some of the best and the brightest across our country are working on this and every year is going to get better. We're going to have to adjust our laws as these new technologies become available and as an issue, coal ash is just a baby. We're going to be raising this baby for a while. It's been growing for a long time and we can give this solution A little bit of time to develop. When we say we are giving Duke some more time that is true. We are also giving our scientists and engineers time to come up with better solutions. And I for one look forward to working on this issue every year cuz it's going to take decades to clean this all up And this year's bill is just one of many and I support it. >> For what purpose does the gentleman from New Hanover, Representative Catlin, rise? >> Thank you, Mr. Speaker. To debate the bill. >> The gentleman has the floor to debate the motion. >> I see something in this legislation that most people don't see. It's, and it's very important because we're actually improving the safety in North Carolina and I wanna explain that. The, now this provision does require that we fix the drinking water problem, problems and we do it as fast as we can and I think the schedule they got is still going to be tough to meet that. And it also looks at damn safety to make sure that we've got things stabilized before one of these goes to a different risk level. But mean while, all of these sites are gonna have to be geologically and contamination assessed so that we know all of the details of the ground water contamination and each one of them will have to

come up with a remediation plan and some of these sites even the ones that are low risk may still have to remove the source When I do a remediation plan and there's a leak in underground storage tank, I pull the tank out before I do the remediation so that I don't pull it back down so this will be a technical evaluation that will still be done on every site where there is a low risk or not and so we will We'll be protecting the environment but we won't be doing everything quite as fast as making them all a higher risk side and on e of the concerns there is there's 110 million tonnes of coal ash to be moved, that equals in that is assuming that we've got giant trucks or giant rail cars, that equals 2,200,000 trucks and in the time limit that we had, if you did an evaluation on an average site and let's say that the new landfill, you know it's got to bet some place that's not in the big city so it's gonna go through small towns and if you've got a school along that road, there will be a coal ash truck under those previous schedules that will go by every three minutes 24 hours a day, 7 days a week. 40% Of our bridges in North Carolina are not strong enough for those coal gas weights. So we could have some major disasters. This gives us more schedule safety to do things and that's not the reason it was done, but is something I have been working on is to slow this down because it We go as fast and make our road sites higher priority like was originally looked at, it would be, we would have many people get killed, we'll have bridges fail, we'll have coal [UNKNOWN] fail, we'll have road fails, we'll have rails fail. It's a big deal to make sure this is done properly so I think this is a, all of theses sites will still be remediated or put into a safe situation. All of our citizens will have drinking water. If we do an assessment and the contamination is spreading, it'll required to be remediated. So, I understand Some of the concerns but this is something that I'm barely involved in, I'm not directly involved because but I understand completely and so it;s important that we do have this schedule flexibility so I think this is a good compromise Bill and I urge you to support it. For what the perception is Mickel Ref. Rise >> To speak on the- >> You're recognized. >> And the motion to concur. First of all I'd like to say Representative Herison said that in 2014 we had the strongest co ash management, Regulations in the country. What I 'd like for you all to know after house bill 630, in 2016 we still have the most strict strongest colas regulations in the nation. That hasn't changed North Carolina is still out front Font on these issues. Georgia has 29 corresponds. The majority of them will be kept in place. Sub Carolina the same thing. We are leading the nation, not a south east for the nation on taking care of these corresponds. But as a mother and a grandmother, the most important thing is not moving [UNKNOWN] out of those [UNKNOWN] I was living around them. It would be provide my family with the safest drinking water I can have. And duke is mandated In this Bill, to provide that faster than they did in senate Bill 71, so those who voted against this Bill, that voted for senate Bill 71, I think would be doing a huge harm to those children, And those families that deserve to know that their water is clean, we can take care of move in this and [UNKNOWN] just in and out, we can take care of the dams to reconstruct to make sure the stuff not leaching, we can continue to look at every, A sample in this wales around these corresponds. But the most important thing we can do is to bring clean water and clean consciouses to those families that are giving that water

to their children. At this point there have been no Reports of contamination, we have the [UNKNOWN] that DHHS had put the wrong standards on and quite frankly it was DEQ that came back and brought that to our attention so DEQ did not do that, they fixed the problem, but if I were a mother, I would still be concerned, I would, want my children to drink water that has been so advertised as being polluted out there erroneously to be drinking that kinda water. So Duke is bringing these families water daily, they're providing clean water right now, but they need permanent clean water, to know their whole households will be hooked up to permanent clean water or be filtered water at their choice, that's whats 630 does, it says, Representative Harrison said there'd be no further projections in these low risk areas, if they decide that these are deemed low risk [INAUDIBLE] coal ash ponds they're gonna have to reconstruct their dams make sure that they're not leaking. And they will be drained also. They won't be excavated unless it's necessary if it is necessary there's nothing to prevent them from being escalated like the high priorities If you would look on your dept on what senator. Representative Harrison gave you from Duke. At Avner Vengosh from Duke says it is reasonable to conclude from this findings that physically removing coal ash, we'd leave a legacy of contamination. You'd still have major issues so the sub surface water of contamination. That's with moving them. That's what Duke saying, and this is what Representative Harrison say no to all this. So do we need to move all that coal ash? We don't know so give it some time, do some recycling into concrete. Maybe there's something more recycling to be done. In the meantime, our responsibility is to get clean water as fast as we can get it. I hope that you will vote with me and concur on this. >> For what purpose does Representative Steinburg rise? >> To speak HP 630. >> You're recognized. >> Thank you Mr. Speaker. Ladies and gentlemen of the house this particular bill the folks that put up together this language, worked very hard to try and find a compromise that would be both effective and would make common sense, S-E-N-S-E, and would be common sense cents, C-E-N-T-S. I think they've achieved that in this Bill. And what we need to remember all of us in this chamber more than anything else is that the protection and guarantee to our citizens of clean drinking water. I mean that is urgent. That is an urgent priority. That is something that we can't even be pragmatic about. We've got to take Take action right away. And that's what this bill does. And on the other aspects of the bill, we need to address the situation at hand of course but it has to be done in a methodical way. One in which the wives of the folks who live in the regions Are going to be protected. But at the same time we need to do this in a way that is diligent, we need to do this in a way that is smart, and that is of the essence. I firmly believe and God knows we've all heard a lot about colash I hear over the last couple of years but I think we don't always agree on a lot of things here on the house compromises tough and we don't always have opportunities where we can compromise, but this is clearly one of those opportunities so I am going to be supporting this bill and I would encourage all of my friends to do likewise, thank you. >> What purpose does Representative Pittman seek recognition. >> To speak on the bill. >> Oh you are recognized I'm sorry. >> Thank you sir. We've all heard or said around here that were not gonna pass a perfect bill on anything. And I'm sure that if we looked hard enough any of us could find something we don't like about this bill. Personally I'm not thrilled that we're still gonna be digging stuff

up out of one hole in the ground and going and putting it in another hole in the ground cause I I know that's already problematic because I've been shown pictures of where this stuff is being spilled and to places where its being taken and those land fills are going to leak, they do, they are already doing it, and where trains going by so my families property They are having an adverse health effects from the dust so I'm not real thrilled that we are still doing that, but two years ago when we were considering the Collage Bill, I ask that we focus on putting this stuff into concrete and it seamed that that was not even Going to be considered so now we all gonna do it and I'm thrilled, I'm [INAUDIBLE] they were going to be put in staff in to concrete and I'm hoping that more of it will be and maybe eventually all of it. I think North Carolina has been a leading state in this nation in a lot of ways and we are the first one actually Is my understanding to do the kind of things that we are tying to do collage sometimes we might make some mistakes along the way because if you are the first one to doing it you hadn't gotten it all figured out yet, so if we are making a few mistakes hey we are still leading the way and I think we are improving on what we are doing by this bill. I think is a good Bill and [UNKNOWN] that we are making these advances and I urge you to support it. >> What purpose does Representative Davis rise? >> Speak on the Bill.. >> You're recognized. >> Thank you Mr Speaker, ladies and gentlemen of the house, I'm in support of this Bill and I ask you all to also, support it but Mr. speaker I would like to bring forth a discrepancy that needs to be handled probably later in a technical correction bill. But I'll direct your attention to page 27 section 3. poran/g A and poran/g. it refers to a coal combustion residual service impoundments located at the weather spoon steam station owned and operated by Duke energy progress and located in New Hanover county. The steam plant in New Hanover county is the certain plant. I googled weather spoon steam station and got, It is a plant that's located in Lumberton North Carolina so, either they made the plant in Lumberton that is weather spoon or they made the plant in Wilmington that is certain, I'm sure Duke will help Representative Arp out in correcting that and get the proper facility in the bill and once again we can handle that, in the technical correction bill. Thank you, Mr. Speaker. >> Thank you, Representative Davis. That assumes that there is a technical correction. Representative Larry Bell is recognized to speak on the motion. >> Thank you, Mr. Speaker. I have a question for Representative Arp. >. Representative Arp, do you yield? >> I do. >> He yields. >> Thank you Representative Arp. I wanted to ask a question about the one half mile radius for providing water for the citizens. Will it be for business to expand that if the water is tested beyond a half mile radius for those citizens who live Beyond a half mile. >> Yes representative is based upon the hydrological and geological effects and whether or not that ploon moves that's the extended boundary that I spoke off earlier. >> Okay. For what purpose does Representative Bumgardener rise? >> To debate the motion. >> You are recognized. >. Thank you Mr speaker. This bill is a good bill. It does a lot of things we originally had in the coal ash Bill. We were the first state to tackle coal ash as a state. This bill is not perfect. I've gotten I don't how many emails, quite a large number. on this bill have a plan in my district. Before anything else happens, the people that live there who have water contaminated need to have that issue resolved. And this bill resolves that sooner than later and if we don't pass this bill, two or three more are gonna go by and we're gonna be discussing this. And I have more news for you all. This won't be the last time we're talking coal ash. If we pass this bill we're gonna have to deal with this issue some more. I have no doubt about that and so, let's do first things first and get water for the people that need to have water. Knowing this bill is imperfect but that we're gonna revisit this issue in the future which is coming fast.

Thank you. >> The Chair intends to recognize the manager of the bill last. Representative Arp you're recognized. Thank you Mr. Speaker. I'd like to clarify a few things that, based on the hyperbole and misrepresentation of what's in this bill. What has happened is the risk factors, I think this is really important to understand. These sites were based upon risk factors and classified as low, intermediary to high risk. After the waters provided and the dam security. around the impoundments are provided for that actually mitigates the risk to that site. And in fact it's been described as one size fits all and that couldn't be further from the truth. A cap and place method cannot be utilized unless as its stated on page 19 that the ground water is secure from the measures implemented. Now let's talk about that method. What the antagonist of this bill is proposing is that we have to excavate all the coal ash and all the ponds and that's the only thing that's That satisfy regardless of the misfactors are medigated or not. Do you know that president Obamas EPA regulations don't even require that, infact what this bill does is allow the secretary to utilise historic Ground breaking legislation we passed in the previous coerce management act or the federal regulations regarding this, and they don't kike that because they don't go far enough. Now just let that sink in a minute. The environmental opponents of this Bill says that, President Obama's environmental EPA regulations don't go far enough, let me compare that to this. Household raise is a similar product that's in a [UNKNOWN]. It used to be that we put those in unlined, Empowerment, and we stopped doing that and we closed them up is to cap in place method, did we dig them all up? And put them up in another alignment somewhere? Was that the measure for the cross the nation? For these, Prior to the new Part D sub regulations, not at all. This plan, the simple truth is, this Bill is results oriented Bill that provides real solutions today, it increases safety for all North Carolinanians of a cleaner, And safer and healthier environment by providing a date certain permanent safe drinking water to every resident within a half mile and extended based upon scientific data and it ensures the empowerment dams are strengthened and repaired to prevent spills into our surface waters. Those, Are the risk factors upon which the risk classifications are based, they cannot be lowered to a low classification until ones those factors are mitigated. So it's not that we're doing away with the risk factor,and quite the opposite, we're satisfying and mitigating, Risk factor is my colleague who is an engineer Rick Catlin point out the benefits of the scientific approach to this nature, number three, this bill provides a reliable and comprehensive and an effective and efficient plan to properly Close the collage basins based upon technical experties and engineering knowledge. This is a balance plan. This is a common sense collage clean up management plan and I ask for your vote. [BLANK_AUDIO] >> Further discussion further debate if not Question before the house is the motion to concur with the Senate committee substitute to house bill 630 [BLANK_AUDIO] Those in favor will vote aye those opposed will vote No, the clerk will open the vote. [BLANK_AUDIO] The clerk will lock the machine and record the vote

82 having voted in the affirmative and 32 in the negative, the house does concur with the Senate Committees substitute to house bill 630, the bill is ordered enrolled and sent to the governor. .embers we are about to go under recess until 8 PM, notices and announcements For what purpose does the gentleman from Rutherford , Representative Hager rise? >> Thank you Mr. Speaker. For an announcement. >> Gentleman's recognized for and announcement. >> Thank you Mr. Speaker. Republicans will caucus about 10 minutes after we recess in 544. [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] Well, they trying to make sure that they understand they don't have the votes out here. I don't know. >> Is there anything in Vegas. >> Yeah there was only two PTS and so who could know. They said on hold only two PTS. >> Is there anything in signing. >> I think we have to go this time of year. >> We need to go. [BLANK_AUDIO] The Gentleman from Raeford recognize for an announcement. >> Thank you for the correct Mr. Speaker, we will call for some 12 28, the rules Chairman gracefully gave up his room for a few minutes. Republicans will call for the 1228 ten minutes after recess. Next the Chair will go and read some special messages very quickly. Special messages from the Senate. The Clerk will read. >> [BLANK_AUDIO] Mr. Speaker, this order that message be sent to the House of Representatives with information that the Senate, about the report conferees for House Bill 5959 conference commit to substitute appeal to be in title act to make various exchange to transportation laws to the State is recommended by the joint legislative transportation oversight committee. When the appropriate action has been taken by both chambers the Bill will be ordered enrolled respectively Sarah Lane, Principal Clerk. >> Senator adopts the conference board. It's ordered enrolled and sent to the Governor. >> Mr. Speaker it is ordered, that the message be sent to the House of Representatives with information that the Senator adopt the report of conferees of House Bill 151. The conference committee substitute, a Bill to be entitled an act to amend the vacation of rental act to clarify the role of real estate broker in transaction between the landlords and tenants and to protect members of armed forces by allowing termination of the rental agreement upon transfer and re deployment and clarify procedures awarding the collection of certain court fees, eviction proceedings and to allow amendments to release real property of Orange County and to facilitate jail construction. When appropriate action has been taken by both chambers, the Bill will be ordered enrolled respectfully Sarah Lane principal Clerk. >> Senator adopts the conference report it is ordred enrolled and sent to the governor. >> Mr. Speaker. It is ordered that the message be sent to the House of Representatives with information that the Senator did not report of conferees for Senator Bill 50. Conference committee substitute of Bill to be entitled an act to increase the authorization of Wilson County to legally the occupancy tax. When appropriate action has been taken by both chambers. The bill will be ordered enrolled respectfully to Ms. Sarah Lane, Principle Clerk. >> Noted. Further special messages from the Senate. The Clerk will read. >> House Bill 728. Senate committee substitute, third edition. A bill to be entitled an act to Amend the Laws Pertaining to Various Occupational Licensing Boards for Concurrence in the City Committee Substitute. >> Finance. >> House Bill 742. Senate committee substitute second edition. A bill to be entitled an Act to Clarify the Requirement for Initial Licensure for Professional Engineers to allow North Carolina Public Schools to Reduce Cost Allowing the Employment of Licensed School Maintenance Plumbers in Concurrence with the Senate Committee Substitute [BLANK_AUDIO] Counter rule 36B. >> Senate Bill 898 committee substitute third edition a bill to be entitled an act to appoint persons to various public offices upon recommendations [INAUDIBLE] of the senate and majority leader of the senate. >> Rules calendar and operations of the house. Madam clerk the Chair directs the following re-referrals, Senate

Bill 419 Limit revolving dual employment is removed from the committee on Finance refer to the committee on rules calendar and operations, house bill 1144 short title sport WRC resolutions Bumcombe RW [INAUDIBLE] is withdrawn from rules calendar [INAUDIBLE] rule 36 B and Senate Bill 667. Short Title, Election Omnibus Revisions referred from the calendar and referred to the committee Rules, Calendar and Operations of the House. [BLANK_AUDIO] For what purpose does the gentleman from Harnett Representative Lewis Rise? >> For an announcement. >> The, gentleman has the floor for an announcement >> Thank you, Mr. Speaker. The Committee on Rules, Calendar and Operations of the House will meet at 7:30 PM in room 1228. We'll be considering House Bill 407. Short Title, Housing Authority Transfer Also House Bill 667. Short title Election Omnibus Bill. And there may be an additional bill noticed. >> For what purpose says the gentleman from Mecklenberg, Representative Blowley rise? >> For an announcement. >> The gentleman has the floor for an announcement. >> Thank you Mr. Speaker. Contrary to my previous hoax. The house committee on finance will meet at 8:30 AM tomorrow in room 544. I guess now there will be two bills that we will take up. Senate Bill 867. Protect students in schools. There will be a PCS coming out tonight that I think will make significant changes to that bill, and the other would be the bill that was just assigned to us. The senate committee substitute to House Bill 728. >> Mr. Speaker. >> For what purpose does the gentleman from Guildford represented [UNKNOWN] rise? >> Inquiry of the chair. >> Just a moment. [SOUND] The house will come to order. The gentleman may state his inquire. >> Given the senate's insistence that they were gonna go home Saturday, why do we need to accommodate them and bend over backwards holding extra meetings and doing extra bills for the senate? >> Well the chair believes that a lot of these bills actually aren't Really Senate Bills there are some house bills [INAUDIBLE] and some of this proposals so that's the chairs understanding . But the chair would intend that the chair had a question that by how late do we go tonight. The chair wouldn't expect that we go past 10 o'clock tonight. >> For what purpose does the gentleman from Catabwa Representative Setzser arise. >> To ask a question of representative blast/g. >> Does the gentleman from Guidford yield to the gentleman from Catabwa?. >> I do. >> He yields. >> Is this your first session in the general assembly? [LAUGH] >> Yes it .>> Does the gentleman wish to address another question to the fresh new member of the From Guiford. >> Yes well more of a statement representative[INAUDIBLE] try and watch and you will learn a great deal. [LAUGH] >> For what purpose does the lady from Buncombe representative Fischer arise. >> For an announcement. >> The lady has the floor for announcement. >> The house [INAUDIBLE] caucus will meet in its usual location 15 minutes That's after recess. >> For what purpose does the gentleman from Cumberland , Representative Floyd rise? >> Inquiry Chair. >> Gentleman's recognized for an inquiry. >> Mr. Speaker I see today that we have made a lot of progress and we're gonna come back at eight o'clock have the progress moved to tomorrow so we can just get a feel for tomorrow. >> absolutely so the intention tomorrow is that the house will more than likely convene at either 10 AM or 11 AM, the chair is leaning towards 11 AM depending on what committees need to meet in the morning. The chair intends that we would be in session roughly about 10 to 9. I don't see maybe even finish before. But the Chair has received a number of requests from folks asking for a dinner break and so the only way to do that since it's 6:45 is to 8 o clock, I would think. Plus the rules committee does in fact need to meet and the Republicans need a caucus. So, we'll try to make it as long of a break as necessary to get that all in but not so long that we. we come back too late, so, sort of the Goldilocks rule. That's all I wanted to tell you. >> Follow up Mr. Speaker. >> The gentleman's recognized. >> Friday. >> Friday we will be here. [NOISE] That's tomorrow. And probably Saturday. >> Thank you Mr. Speaker. >> And it would appear that we will be able to conclude our business in Saturday. Any further notices or announcements. Now, the house is going to stand in recess subject to the ratification of bills, messages from the senate, committee reports, conference reports, re-referral bills and resolutions, appointment of conferees and modification to the calendar. To re-convene at 8 pm. We are in recess.

[SOUND] >> Democratic caucus 1425 at 7 pm. [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] [SOUND] The house will come back to order Representative Lewis is recognized to send forth the committee report the clerk will read. >> Representative Lewis rules calendar and operations of the house committee report Senate Bill 898 2016 [INAUDIBLE] appointment bills favorable house committee substitute unfavorable Or Senate committee substitute. Calendar and without objection, this evening's calendar. So ordered. [BLANK_AUDIO] [BLANK_AUDIO] Madam clerk the chair directs that Senate Bill 667 short title is elections omnivous/g revisions be removed from the committee on rules and counter for senate rule 36B, counter for the night without objection, so ordered. [BLANK_AUDIO] [BLANK_AUDIO] Madam clerk The Chair directs that house bill 742 short title PE Licensure allows schools maintenance plumbers be calendared for this evening, for a motion for concurrence without objection so ordered. [BLANK_AUDIO] [BLANK_AUDIO] House bill 550 the clerk will read. [BLANK_AUDIO] [BLANK_AUDIO] Representative Tine, Watford and Waddell. House Bill 550. A bill to be entitled an act to Authorize Ownership of Service Animals Owned by the State or a Unit of Local Government to Be Transferred to the Service Animal's Handler or Other Specified Persons Upon the Service Animal's Retirement From Public Service. General Assembly of North Carolina enacts. >> For what purpose does the gentleman from Dare, Representative Tine, rise? >> [INAUDIBLE] for a motion. >> The gentleman is recognized for a motion. >> I move that the House do concur with Senate committee substitute to House Bill 550. >> The gentleman's recognized to debate the motion. >> Thank you, Mr. Speaker. This bill is a bill that has to do with the dog retirement bills that have gone over. We send several local ones to the Senate and they decided to put them all into one and send it back, so I asked that you vote Green. >> For what purpose does the lady from Wake, Representative Adcork arise. >>To debate the motion. >> The lady has the floor to debate the motion. >> Thank you Mr. Speaker. Well this humble little bill went over to The Senate as house bill 1009 and they had the great idea to make it a state bill. So I'm asking you to vote green because this literally is indeed my dog and I am walking it. Thank you. >> For what purpose says the general from Wake, Representative Dollar, rise? >> See if the gentleman from Dare would yield for a question. >> Does the gentleman from Dare yield to the gentleman from Wake? >> I do. >> He yields. >> Representative Tine, I'm reading the title, the short title of the bill. Is the title here is this a dog senator or a senate dog? >> Leave it as a senator's dog that I am helping to walk.

>> Further discussion further debate. If not the question before the house is the motion to concur with the Senate committee substitute. To house bill 550. Those in favor will vote, aye. Those oppose vote no. The clerk will open the vote. [BLANK_AUDIO] Do the following members wish to record on this vote? Representative Mitchell, Representative Arp, Representative Dixon, Representative Bishop, Representative Robinson, Representative Reeves, Representative Pendleton, Representative Ross, Representative McGrady. [BLANK_AUDIO] The clerk will lock the machine to record record the vote. >> 109 having voted in the affirmative and none in the negative. The motion concur with the senate committee substitute a house bill 550 is adopted. The bill is ordered enrolled and sent to the governor. Senate bill 898 the clerk will read. [BLANK_AUDIO] >> Senator Apodaca senate bill 998 a bill to be entitled an act to appoint persons of various public officers for recommendations of the presidential team pro team of the senate, and the speaker of the house representative and the majority leader of the senate and to make technical changes. General assembly of North Carolina enacts. >>What purpose does the gentleman from Harnett Representative Lewis rise. >> To speak on the bill. >> The gentleman has the floor to debate the bill >> Mr. Speaker, thank you. Mr. Speaker and members, this is the annual appointments bill that names the speaker's appointments. It will pass over to the senate. The president of pro team will add his. And then we will concur. I will appreciate your positive vote with this little bit of debate. >> The question for the house is the passing of senate bill 898 on its second reading. Those in favor will vote Aye those who opposed will vote No, the clerk will open the vote. [BLANK_AUDIO] [BLANK_AUDIO] Do the following individuals wish to record. Representative Mayer, Representative Reeves. >> Representative Dixon, votes aye. The clerk will lock the machine record the vote. 113 having voted in the affirmative and none of the negatives. Senator Bill 898 passes it's second reading and will that objection be read a third time. >> General assembly of North Carolina enacts. >> The question for the House is the passage of Senator Bill 898 on it's third reading. Those in favor will say ayes. >> Aye. >> Those oppose no. The ayes's have it. Senator Bill 898 passes it's third reading. It will be returned to the Senate. Senator Bill 667, the Clerk will read. Senator Apadaca, Senate Bill 667, a Bill to be entitled an act to provide /g consistency to name to provide complete election to campuses, to require the attorney generals to defend local acts against challenges and to to require exemplary captions for constitutional amendments balance, to authorize a joint legislative elections oversight committee to study municipal elections, in even number of years. To update the filing period for elections in the city of Reidsville and to provide pertisanship of it's citizens, redistricting data program for return of elections data General assembly of North Carolina enacts. >> For what purpose does the Gentleman from Rockingham, Representative Jones rise? >> To debate the Bill, the Gentleman has the floor to debate the Bill. >> Thank you Mr. Speaker, I've raised in favor of the Bill and I'm happy to wall through quickly this is the omnibous elections revisions Bill. We heard this morning in the elections committee. Section one, the House has already passed. This was a non controversial measure. 10 days of conversing for the primaries. That would be the same as the General of Action. Section two would require the attorney general to defate To defend our local bills and state laws in court. That just clarifies that part of his job. Section three clarifies the order of the ballot for the court of appeals as you know in our partisan races the governors party is listed first. And so now that the court of appeals, the party is listed on the ballot, that would have the governors party listed first for with the court of Appeals. Section four, the proposed amendments if they are multiple amendments on the ballot in the future they would be designated by some short descriptive caption that would actually explain to the public something about the bill they would not just speak hard on amendment one, amendment two, amendment three. So rather than numbering there would be a short descriptive caption. Section five there's been some thought about Municipal elections

being held in even number of years. The thought being that they would be will be higher voter turnout, there will be less cost by eliminating the odd year elections if that happens it would be gradually implemented, but this is simply a study, wanna make sure you understand that section five would just be to study this issue and to bring it back early in the next session of the general assembly. Section six is a non controversial local provision for retro/g. You may recall that in the last session, the voters had an opportunity in retro for referendum but moved their elections from October to November that passed with 87% of a vote. This provision just picks ass the following period and makes it the same filling period as the other municipalities that have November elections in the county. And in section seven through nine, basically prepare for the resit of the 2020 census. It speaks of our participation in the 2020 census redistricting data program of the census bureau. And the reporting of voting districts, some of you may be familiar with the term voter tabulation district, and at the time that that was created, the current precincts were created back in 2008 prior to the last census, those were the same as the precincts. However, since that time, many precincts have divide, others have combined and this would go back to voter tabulation districts mirror the precincts and election results be given by precinct. So that is, short version basically walking through the Bill. I would certainly stand for any questions or members I would appreciate your green vote on this Bill. >> For what purpose does the gentleman from Durham Representative Hall rise? >> Ask a question on the Bill sponsor, the gentleman from Rockingham. >> Does, the gentleman from Rockingham yield to the gentleman from Durham? >> I yield. >> He yields. >> Thank you, Mr. Speaker. Representative Jones, I'm trying to determine exactly what the intent is of the requirement of the attorney general to defend these actions. Could you tell me what actions you anticipate what [BLANK AUDIO] [BLANK AUDIO] General to defend that act. I think Representative Stam/g may have even a better explanation. He mentioned an explanation, And elections today. >> Mr. Speaker. >> For what purpose does the Gentleman from Wake, Representative Stam rise? >> Would the Representative of Hall ask me the question? >> Does the Gentleman from Durham wish to direct the question to the Gentleman from Wake? >> Mr. Speaker, I'd be glad to direct the question to the Gentleman from Wake if that's his his preference. >> Thank you. In court proceedings in America, It's adversarial. This is not necessarily true in Europe, but, you have someone on each side trying to present a case. Well we've had three cases fairly recently, where only one side was really in court. Regardless of what you think about it, I'll just give you an example, the Wake County school board district case. Originally, the Attorney General was in it but then when some senator The senator who did the bill was dismissed as a party. The Attorney General said, we can't defend this anymore. So when it went to trial, there was a plaintiff on one side and the only defendant was the Wake county board of election. And its position was, we don't care. Just tell us what the rule is and nobody had standing to come in and defend the case. Well that's not the what you wanna have in court, you ought to have somebody and in this case the attorney general as the lawyer for the state defending the constitutionality of the General Assembly. >> Speak on the bill. >> The gentleman has the floor to debate the bill. >> Thank you Mr Speaker and [BLANK_AUDIO]

it seems like we just had an explanation that said a party who's the dependent In a suit that says we don't have a defense or we don't object to relight/g this being requested has an obligation or the attorney general has an obligation to defend it anyway, rather than let it be resolved in this case. It sounds like to the satisfaction of both parties. So I don't know for manufacturing required litigation in court action even in a situation where there really is no dispute. An error or a problem has been brought to the attention of local municipality or agency. They acknowledge or say they don't have a position one way or the other don't have a problem with. They have access to legal council that they so choose to pursue it. It seems to me that if we're gonna do this, someone needs to know how much this additional is gonna cost and what restraints need to be put on the legislature or others for creating this additional exposure. I don't see any of that in the bill, I don't see an explanation for it, I don't see a study. This is what is anticipated to be and I don't know why we would be opening up this can of worms. So I would say vote against the bill. >> For what purpose does the gentleman from Wake Stam rise?e >> To speak on the bill. >> Gentleman has the floor to debate the bill. >> Let me just correct that point, and this has nothing to do with whether or not you like the Wake county school board district case/g at all. But there was not an agreement that this was a good thing everybody was happy with it. What it was is a player chose is its only defender an entity that didn't care how it came out. There were plenty of people who cared but they did not have standing to be in the case, and that is a travesty in American law. >> For what purpose does the gentleman from Yek county Representative Zackary rise? >> I would ask to be excused from voting through 24. >> Gentleman will be excused from voting on the bill. >> Thank you sir. >> What purpose does the gentleman from Durham Representative Mitchell rise? >> To ask representative Stam a question. >> Does the gentleman from Wake yield to the gentleman from Durham. >> I do. >> He yields. >> Representative Stam and your explanation of this you outlined and advisory position where a local act being challenged unconstitutionally/g a local act that was passed by The General Assembly stating that the adversely that you had to plaintiffs lawyer but the city or county where that act took place did not have anybody representing them , did I understand you to say that? And that- >> The county board of election was represented but the positions of Wake county board of election was we don't care who wins just tell us soon who wins. And that is If I'm not mistaken, Representative Dixon had a case like this in Duplin county four five years ago where the attorney General, is that exactly correct, would defend a Bill passed by this assembly because it's just a local Bill. >> May I ask him another question? Does the gentleman yield to the additional questions? >> I do. >> He yields. >> So what this bill does now it says that, any local act passed by this General Assembly, that is declared unconstitutional. This is gonna require this Attorney General to defend- >> No, you've go the cart before the horse. The question is it not if one is declared unconstitutional, but rather is somebody says it's unconstitutional, it's an act of this assembly and if you'll recall, article I think it's seven section one says the state, Of sets tools for cities and counties and we pass a bill and somebody sues about it claiming it's unconstitutional, there should be somebody defending it and we already have a provision in private litigation that if a party claims the unconstitutionality they have to notify the attorney General so we've already got that, what this would say is that the state is a party and just like in all other litigation in which the state is a party claiming that a state wise statute is unconstitutional the normal thing is that the Attorney General defends. That's his job and he's got a whole stable full of hundreds of lawyers to do it. >> May I ask him another question? >> Yes, the gentleman may answer the-

>> [CROSSTALK] >> My point and my question to you is the fact that with these local actions that somebody That somebody claims is unconstitutional the state attorney general is going to be involved in all those actions if nobody from the city or county is there to represent them. Is that what I'm here. >> Not quite. Well the first part of your sentence is correct. Yes, the attorney general would defend, but that doesn't proclude depending on the case whether city county does but in many cases, the plaintiff doesn't sue the city or county. >> I think in the similar cases I've cited it was a total of. I mean it's just wrong they have a trial where only one side is presenting adversary evidence. >. May I speak on. >> The gentleman has recognized to debate the bill. >> This is getting to be something of a problem Problem the way how we the bill. It says it doesn't say maybe represented it says shall be represented. And my problem there is if this begins to happen on a frequent basis how many times is the Attorney General gonna be called in to start defending a County or City when they have their own legal counsel to help them and they're the ones who draw the legislation, whatever it is to get us to pass. I mean basically, that's what it is. So aren't we adding much much more, to the duties of the Attorney General than it's required of him . >> For what purpose does the gentleman from Yucking representative Zachary rise? What purpose does the gentleman from Lake representative Jackson rise? >> To ask representative Stam a question. >> Does the gentleman from lake yield to the gentleman from Lake. >> I do yield. >> Representative Stam and that white county case Did any party file a motion to intervene? >> I believe that after the appeal and I'm not actually sure about that, that Senator Barefoot and, whoever else was the legislative defendant were dismissed by the federal district court, and not allowed to remain in and at that point the attorney General said I can't defend this anymore. And we had a one sided trial. >> Mr Speaker, can I ask a question of the lady from Wake County Representative Gill? >> Sorry. >> Lady from White County Representative Gill. >> Does Representative Gill yield to Representative Jackson for a question. >> I yield But I don't know whether I'll be able to answer it or not. >> She yields. Representative Gill, were you asked to testify in the Wake county action Representative Stam is talked about tonight on the floor? >> No. >> A follow up question. >> Does the lady yield to an additional question? She yields. >> Representative Gill were you asked to testify in federal court earlier this year in a law suit involving Wake county redistricting? >> I'm sorry Yes I was. >> I asked the lady A different question Mr Speaker. >> Does the lady yield for an additional cross examination? >> [LAUGH] >> I'll do my best to answer the question. >> She yields the gentleman is not in the courtroom the chair will mind. >> And Representative Gill I believe you testified after I did so, was there not an attorney sitting at the defense table who ask you questions. >. Mr speaker. >> For what purpose does the gentleman from Rowan Representative Warren arise. >> A point of order I believe he's leading the witness. >> [LAUGH] >> I'm hoping somebody will make a motion to continue the case at this point but its his way I guess I'll let him lead at this point so I >> Yes. >> If I could ask another question Representative Stam Mr speaker. >> Yes Representative Stam yield, he yields. >> Representative Stam who won that law suit that you claimed that no one defended. >> The plaintiffs case was so weak >> [LAUGH] >> That the defendant won anyway. >> [LAUGH] >> Because it was so pathetically weak, but my point

is that even though the defendant won that case, the defendants position was It didn't care and you should never be in that situation again. >> Mr speaker if I could speak on the bill briefly >> The gentleman has the floor to debate the bill. >> And I just let the body know that just the >> The chair is asking Lee to go past 9 PM is there objection, hearing none so we are going past 9. [INAUDIBLE] >> Too late >> [LAUGH] >> Mr speaker before I ask another question on another subject on the bill I just wanted the body to know that that's the first time a federal district court judge has ever told me my testimony with no weight, end of final attenure/g. Mr speaker if I could [INAUDIBLE] a question to the gentleman from Rockingham Representative Jones. >> Representative Jones does the gentleman yield to the question from the gentleman from Wake. >> Mr speaker at nine o'clock in the whining hours of this session I reluctantly do yield. >> He yields. >> Representative Jones I wanna move to section three of the bill which is the ordering of the judges on On the ballots and ask you why that section first is necessary? >> The reason that it is on there is because currently the candidates will not be listed in order of the governor's party because technically it's not a partisan election. It is an election where the parties are on the ballot, but as you recall there was a primary as such where all the candidates were together. It was not a republican primary and a democratic primary, but even though the parties were listed it was not a partisan election. Therefore, currently it's not subject to the rule that the governor's party would be listed first. Under this legislation the policy decision would be that the governor's party would be listed first. >> Mr. Speaker can I ask the gentleman another question? >> Does the gentlemen yield for additional question? >> I yield. Representative Johnson and as I understand it it's like we [SOUND] In a circumstance like we had in 2014 when I believe we had 19 names on our appellate court Judge Ballard under this provision, all the Republican names will be listed first in alphabetical order and then all the Democratic names and then the Independents. Is that correct? >> Representative I believe that is correct except to say that instead of alphabetical order I think now it starts with a particular letter that is drawn or something like that and then it goes alphabetical after that. But yes, basically, so. >> Mr. Speaker can I ask another question? >> Does the Gentleman are you up to an additional question. >> I yield. >> He yields. >> Representative Jones, I just want to make trial understand it straight cuz in sub section one it says in alphabetical order, and does not refer to refer to the current way it's done and so if that's an intention I just wanna clear that up while we're on the floor. >> I thank the gentleman for his comment and I stand corrected if that is what the language says. I was answering that off the cuff without reading but it does say there will be an alphabetical order. You're correct. >> Thank you. >> Mr. Speaker can I just speak briefly- >> Gentleman's recognized to debate the bill. >> There's a lot of reasons I would vote against this bill. Section, two is one of them. Section three is another one. I would just ask, that you think about the policy you're setting. We've got a governor whose election in November. If the body decides that this is a good policy, I hope you'll see fit to keep the policy through the 2018 election as well. >> For what purpose does the gentleman from Cumberland Representative Richardson rise? >> To very quickly debate the bill. >> The gentleman is recognized to debate the bill. >> Members, the who had a song goes, one of the line goes, meet the new boss same as the old boss. 20 years ago, Representative Daughtry and your party, stood up here in this very assembly and said that partisan election of judges is absolutely wrong. That we should not put judges through that. A judge takes an oath in front of God with his hand on the Bible or her hand on the Bible saying that they will be fair and impartial. The mere fact that you'll all need an a partisan election is a direct contradiction of that. You guys were right 20 years ago when you said, let's do away with partisan election of judges and go to merit selection. We should not put judges through an election process, it's ridiculous, it's wrong. We need wise judges that are fair and impartial.

The one place of the law that the founding father said that had to eb be impartial was the judiciary. They do not need to be partisan. Secondly Representative Stan is correct about the importance in the adversarial process about having advocate on both sides, but what it doesn't tell you is that in our law we've got some pretty wise judges, and some pretty wise laws. We have the ability in our law in our jurisprudence to do what is called a friend of the court brief, and a friend of the court appearance and anybody that has an interest in the litigation can apply to the court to intervene and defend. The ACLU does it all the time, various parties on both sides of the litigation do it. There is no need for this legislation you're putting here. I urge you to vote against it, I urge you to go back to your roots and go back to impartial merit selection of judges. Thank you. >> For what purpose does the gentleman from Rowan Representative Warren rise? >> To speak on the bill. >> The gentleman has the floor to debate the bill. >> Just two points I'd like to make number one, revealing the judicial candidates, political preference or political affiliation doesn't necessarily mean that that individual is running on those affiliations that's actually a revelation to the constituents since to which way this person is leaning or what his political beliefs are. So I don't necessarily think that a revelation to think whether affiliated indicates partnership with the the exacted. I at my capacity here as a Republican try to be absolutely pragmatic about all the legislation that comes before us and I bet they're not always successful but that is the attempt. Secondly, as far as the attorney General section goes, perhaps having that in there taking Representative [UNKNOWN] comments into considerations, perhaps I would encourage all of us and future legislators, to be a little bit more judicious on how we handle local Bills, and look at it from a different perspective going forward I recommend the Bill. >> Further discussion, further debate, for what purpose does the gentleman from Durham, Representative Hall ride? >> Just a quick comment Mr Speaker. >> The Gentleman is recognized to debate the Bill second time. >> Thank you Mr Speaker, I just wanna go back to an action that was taken a few years ago and this general assembly that provided should there be a determination or one of the laws that we passed be challenged Mr Speaker and the president of the senate had the authority to take action and there's a fund that, already exists providing for them to be able to take that action and do that and so, not only do I think this is unwise to add this additional burden to the attorney general as opposed to how it's already treated in law but again, we're creating additional expense. I understand Representative Stam says the attorney general has a lot of money, but as with every other thing we do here when we add additional duties they would require additional persons and who knows how many local laws we're gonna pass affecting local municipalities then there's gonna have to be someone there under this Bill to respond without an, option otherwise. So I would again ask that you vote against the bill. This section in here is unnecessary as well as detrimental to what we're trying to do here in the legislature and I'd ask that you vote against the bill. >> For what purpose does the gentleman from Harnett Representative Lewis rise? [BLANK AUDIO] Further discussion, further debate. If not the question for house is the passage of Senate Bill 667 on its second reading. Those in favor will vote aye, those opposed will vote no. The clerk will open the vote. [BLANK AUDIO] [BLANK_AUDIO] The clerk will lock the machine and record the vote. 73 having voted in the affirmative and 40 in the negative. Senate Bill 667 passes at second reading and will without objection we raise third time. >> General Assembly of North Carolina enacts. >> Further discussion, further debate, if not the question for the house is the passage of senate bill 667 on its third reading those in favor will say aye? >> Aye. >> Those opposed say no. >> No. >> The ayes have it, senate bill 667 has been passed in its third reading is returned to the senate. House bill 742 the clerk will read. [BLANK_AUDIO] >> This here was Arp, Cutlin and Millis. House bill 742 appear to be entitled an act, clarify the requirements

of the initial licencing for professional engineers and the land North Carolina public schools to reduce cost by allowing employment and license school maintenance promos, General Assembly of North Carolina enacts. >> For what purpose does the gentleman from union, Representative Arp rise/? >> For a motion. >> Gentleman is recognized for a motion. >> Motion to concur >> Gentleman is recognized for a motion to concur. The gentleman has the floor to debate the motion. >> Thank you. Ladies and gentlemen, this is a bill that we had passed 116 to nothing. Went over there to the senate they modified it slightly they passed it unanimously. This basically brings professional engineers licensing into conformance with the national, the new national model law licensing [INAUDIBLE] additional flexibility. Also what was added was flexibility for schools and local governments to hire plumbers basically. And be able to have them have a technicians license or if their plumber does already have a license doesn't require them to lease licenses as long as they are employee of the school board and list that regarding that. So its pretty innocuous that I ask your support it was voted unanimously over there thank you. >> Further discussion further debate. If not the question for the house is the motion to concur with the senate committee substitute to house bill 742, those in favor will vote aye those opposed will vote no. The clerk will open the vote. [BLANK_AUDIO] The clerk will lock the machine and record the vote. 113 having voted in the affirmative and one in the negative the motion to concur with the city committee substitute to house bill 742 is adopted. The bill is ordered enrolled and sent to the governor. Madam clerk, the chair directs that senate bill 326 which was previously referred to the committee on rules, calendar and operations of the house be removed from said committee and calendar. Senate bill 326 the clerk read. [BLANK_AUDIO] Senators Gunn, Meridith and Apodaca. Senate Bill 326. An Act Revising the Conditions Under Which Counties and Cities May Inspect Buildings or Structures. The General Assembly of North Carolina enacts. >> The gentleman from Mecklenburg, Representative Brawley is recognized to send forth an amendment >> Mr. Speaker? >> For what purpose does the gentleman from Cumberland, Representative Richardson, rise? >> Mr. Speaker, I have a conflict of interest in this bill, and I need to be withdrawn pursuant to rule 24.1 >> The gentleman will be excused from voting on this pursuant to rule 24.1. >> Mr. Speaker, could I go through this bill very quickly before sending forth the amendment? If the gentleman would like to debate the bill, the gentleman is recognized for that purpose. >> Thank you Mr. Speaker. The basic bill that we are looking at today, we first saw in 2013 it was then House Bill 773. It passed by 82 votes to 32 and was sent to the senate where it languished and eventually died, due to objections from senator from [UNKNOWN] and 2015, was refiled as house Bill 530, it went through some committees it had some changes, there was a lot of discussion with cities. We went into a long series of meetings and as, the budget last year became somewhat distracting to me, I kind of just let it go. But there was a companion bill on the senate. The senate continued to work on it and that is essentially what we are dealing with today. This I got involved with being asked, having run the bill previously on the house if I would carry this as a PCS on this side and agreed to do so. The bill addresses the issue of rental registration and an over abundance of inspections. Both of these programs are valuable tools that cities can use in dealing with crime ridden apartment complexes or with areas of a city that are falling into this repair, due to lack of economic attention by the owners. A few cities have abused it and turned it into a money making opportunity or have over-regulated behavior. I think one particular city decided that everyone with rental property had to register their property. They had to put a sign inside the front door with large letter, readily viewable by the S.W.A.T. Team if they came through the door, listing the registration number, the number of a 24 hour contact and saying that it was registered with CMPD. This particular city had a sports franchise and people would sometimes rent very expensive houses and if you are a very high paid professional

player, you do not want the first thing that people come through the door is a sign that says this place registered with police department. If they take the sign down the owner could be subject to fines. What the bill seeks to do is moderate the excesses while preserving a useful tool for the cities, we've had a lot of conversations over the past months and several in the last few days and I do want to offer an amendment to incorporate some of the latest requested changes. >> [CROSSTALK] >> The gentleman is recognized to send forth an amendment the clerk will read. >> Representative Brawley moves to amend the bill on page 1 line 6 by deleting and amending, >> Thank you Mr. Speaker. >> The gentleman is recognized to debate the amendment. >> The changes to the basic text, first was one requested by the City of Durham that we return the phrase periodic inspections to the bill and have agreed to do so. The section beginning in line 16 was requested by the City of Winston Salem and this is basically to address a problem showing up in a multiple tenant facility where an unsafe condition found in one allows inspection of them all. Starting line 25 for several amendments requested by Cleveland County on page two a request to change by the Sheriff's Association in last the effective date push back at the request of the City of [UNKNOWN]. Mr. Speaker I'd like to move the adoption of the amendment. >> Chair sees three lights on, do any of these members who wish to debate the amendment. Hearing none the question before the House is the adoption of amendment A1 sent forth by Representative Brawley. Those in favor will vote aye, those opposed will vote no, clerk will open the vote. [BLANK_AUDIO] [BLANK_AUDIO] The clerk will lock the machine and record the vote. 109 having voted in the affirmative, one in the negative, the amendment is adopted. Does the gentleman desire further comment? >> If I'm continuing my first debate, yes. >> The gentleman is recognized to continue his first debate. >> Okay, well now the bill has amended, does incorporate comments. This is not an endorsement or approval by any of the cities that are named. This has gotten to the point which has the whole mark of good bipartisan or encompassing legislation. A lot of people can live with it, nobody is completely happy with it. I ask your support. >> For what purpose does the gentleman from Cumberland Representative Soccer/g rise? >> To debate the bill. >> The gentleman has the floor to debate the bill. >> Thank you Mr speaker, I'll keep my comments very short. I've been working on this for Representative Brawley and various [COUGH] agencies down in [UNKNOWN] for the last year and a half. Now I will tell you that speaking on behalf of fair bill that we do endorses bill. It's been very thoughtfully worked down. This is a very good bill, so i would like to see a unanimous vote on vote on this bill if we can, Representative Ford. >> Thank you. [LAUGH] >> For what purpose does the gentleman from Union Representative Brody rise? >> To ask the bill sponsor a question, please. >> I yield. >> Recognized that he yields. >> And Representative Brody, first I apologize I did come to you and say I would like to talk to you but I thought the bill got pulled and after that I just forgot. But just a little clarification because I have owned rental property and I can relate to some of this that on page two you had, it says that should the same violation occur more than two times in 12 months then the owner may not correct the option but their only option really is to re evict the tenant and if I understand that correctly, then on the next page it says that the county sheriff shall assist a landlord in addressing criminal activity or may include testifying in court but then the very next sentence it says that if the sheriff department doesn't cooperate, it means that the activity goes away if you can explain that a little bit. >> I'll be happy to I thank the gentleman for his question. What this particularly addresses is in rental registration landlords are held responsible for criminal activity taking place within their rental property in many of these cities. If what we have done is said you can't register everybody only people with a lot of crime.

If you are in the program and you continue to have problems with a criminal in your building, they want the idea is that you will take steps to evict this person and remove them from the premise. A difficulty with that is an eviction on the basis of criminal behavior that has only the documentary evidence that's obtainable from arrest records and mug shots, is considered here say if the arresting police officer or sheriff's deputy does not show up to testify to having made the arrest. It has been a common occurrence in some of the large metropolitan areas for them to demand a landlord evict a tenant who is involved in criminal activity yet will not show up to testify to the arrest which means it's hearsay, the eviction is dismissed with prejudice, you're stuck with a criminal and the police come back and say, you didn't evict the criminal, now we're gonna fine him. What this does is say, if the police do not help, they can't fine you for your not being able to evict without their testimony, that is the whole intended purpose of this. [BLANK_AUDIO] >> For what purpose does the gentleman from Cumberland, Representative Floyd rise? >> To debate a bill- >> The gentleman has the floor to debate the bill. >> Mr. Speaker, I want to thank the sponsor for working with the city of Eva. This has been a merry go round at its best and one time we thought it would stop, but then again. it wasn't receipt, it again in rules on Tuesday and from Tuesday to today we have had a lot of communication with our city staff in order to make the necessary correction as though the bill sponsor mention as though the bill sponsor mentioned everybody is not happy but it's something that we all can live with, give me an example of this and many of my colleagues from [INAUDIBLE] we can give some assistance we had a unit of about 640 we had a [INAUDIBLE] that had about 640 unionists. In that union there was a crime infested and so the unit was about to be closed, the department was able to work with the city [INAUDIBLE] police department and make the necessary correction now it's one of the safest apartment units in the city by working with law enforcement agency in order to find out what is necessary to do the necessary correction there. I wanna thank the bill sponsor for working with the City of [UNKNOWN] in order to make sure that we keep our rent program. And I ask my colleagues to support this bill. Thank you. For what purpose is the gentle lady from New Hanover Representative Hamilton arise? For what purpose does the lady from Mecklenburg Representative Earl arise. >> To speak on the bill. >> The lady has the floor to speak on the bill. >> I would just like to speak in support of the bill and certainly speak to the issue that Representative Brawley just spoke about, and really and truly I wish it would go a little bit further. I really wish that the police did not even have to show up. Because if you've got a police report of the criminal activity that has been going on, then a police officer should not even have to show up. That police report ought to be enough. I think it's kind of a poor use of the police force over time. And in Mecklenburg we are sure we are obeying the city council to give us more police officers. And I can speak from experience that this has happened, and you go to court, you don't have a police officer there with you the judge rules in favor of the tenant because like representatives have said, they say it's hearsay. So I really wish it went further than it did. In a way police officers didn't even have to appear in court because often times when I went I didn't have a problem the second time getting a police officer to go. But every citizen out here that has this problem might not have as easy a time to get a police officer to come and go to court with them. So I think it's a good bill, it's a good

start but it just needs to go further. I wish you'd support it. >> For what purpose does the gentleman from Randolph, Representative McNeil arise? >> To debate the bill. >> You have the floor to debate the bill. >> Thank you Mr Speaker. I had not planned on speaking on this bill until the questions started coming up with Representative Brody and the Sheriff's Association and listening to Earl talking about the police officers. But Representative Brawley has done exactly what the Sheriff's Association asked him to do which is make a small amendment and he's done that. Otherwise the Sheriff's Association is okay with this bill. I understand what Representative Brawley is trying to do I understand that the layman, I also understand what Representative are all the same. Law enforcement officers are stretched in and a lot of times the harvester that did the eviction has worked third shift and this is being heard at 9 O'clock in the morning, he doesn't show up and that happens a lot, now I understand that but I think probably willing to let this goat this time and see how it works and if we have to come later and fix it, I'm sure Representative Brawley will help fix it so, as far as the Sheriffs association is concerned, they're okay with the Bill as is written. >> Further discussion, further debate, if not the question before the house is the passage of senate Bill 326, the clerk will open the vote. [BLANK AUDIO. [BLANK AUDIO] Clerk will close the vote. 110 voted in the, affirmative, one in the negative. Senate bill 326 has passed its second reading and will without objection be read a third time. >> General Assembly of North Carolina enacts. >> Further questions, further debate, if not, the question before the house is a pass of the senate bill 326 on the third reading. All those in favor will say aye. >> Aye. >> Opposed no and the ayes have it. [LAUGH] The bill is enclosed and returns to the senate. By a special messenger. Thank you so much. [BLANK_AUDIO] Senate Bill 673. The Clerk will read. >> Senator Apodaca, Senate Bill 6 73 A Bill to be entitled in acts for revival recovered from capital related calls to encourage with natural gas utility for constructive natural gas infrastructure for large manufacturing employing. General Assembly of North Carolina enacts. >> What purpose does the gentleman from Raeford arise? >> Debate the bill. >> Gentleman has the floor to debate the bill. >> Thank you Mr.Chairman this is a economic development tool that we wanna put it in a tool of the economic developers North Carolina and our conference department. This tool allows a company that would invest $200 million or more, and have 1,500 jobs or more to be able to have a natural gas line that would be normally called in feasible in the business case and utility commission would not let them run it. Run this gas line and use up to 25 Million Dollars to do that. And disperse the in feasible piece across their company, and the rate payers until the next rate hike and then it would go into the red hike system. And as soon as that invisible part was paid off, it would go, it would actually decrease the rates. It's a pretty simple bill. This bill passed 108 of 4 I believe last session. It just got put in another bill and sent back to us from the senate, and Mr Chairman I send for any questions. >> What purpose is the gentleman from Kregon Representative Speciary rise? [BLANK_AUDIO] What purpose does the gentleman from weigh representative stem arise? >> To speak on the Bill. >> The gentleman has the floor to speak on the bill.>> Mr.Speaker member of the house I'm told that I voted for this last year on an identical bill and I plead temporary insanity because you

know how I fight targeted tax and senators and that kind of thing for the next 16 years. This is actually worse I am in favor of providing public infrastructure for economic development. If we can afford to the way that we can afford it that would be the proper way to do this to appropriate five ten 15 million dollars to lay on this project but what this bill does is something quite different. And the term, I didn't make this term up. This is a term they use. It socializes the infeasible cost that is the cost that should not be applied to this. It would not be justified for this project itself and makes the other rate payers pay that. I don't think that's right. If you wanna spend money for a new person. A new person to come on board, appropriate the money, don't make other people pay for it just cuz they happen to be on a line that's nearby >> For what purpose does the gentleman from Craven, Representative Speciale, rise? >> To speak on the Bill. >> The gentleman has the floor to debate the bill. >> This bill allows natural gas companies to collectively impose $75 million in new fees on current natural gas customers. The pay for natural gas expansion projects for certain special facilities . These bill is opposed by the North Carolina Propane gas Association, the Carolinan Utility Customers Association, the AARP of North Carolina and the North Carolina Petroleum and Convenience Marketers. Extending these gas lines can cost up to a million dollars a mile. The natural gas companies they don't want the mega-size owners to shoulder the heavy up front costs for these projects so instead they want to dump it on all the existing customers. It's just a bad idea and I, ask you to oppose this bill. >> For what purpose does the gentleman from Lincoln Representative Sane rise?. >> Speak on the Bill Mr Speaker. >> Gentleman has the floor to debate the Bill. >> Thank you Mr Speaker, Representative Hager is right, this Bill and what it attempts to do is an opportunity for those folks who don't have, really a whole lot, it put some infrastructure that's there, that should be there, that's not there though to help build and recruit economic development and bring new business to an area where folks who are needing to work will finally have an opportunity and the infrastructure to lure businesses into those areas. So, it's incredibly important when you talk about the philosophical differences, some want the government to pay for it. Some more private enterprise pay for it where the right pairs are gonna pay for it in the day your talking about tax payers those are people that are going to be paying for it some way or the other either by the rate pay or through tax incentives or whatever it is that we're talking about. I think this is the best way possible to move forward by putting infrastructure there through a private company that says we would build it if you allow us to do it and that will help recruit and that will help the economic development offices in those areas to bring those businesses into the area to say we actually have what you need plus the workforce that will come and work there, but it will allow this mega sites and other folks and other players in that game to recruit those businesses in the area, I support the bill and I hope that you will too. >> For what purpose does the lady from Orange Representative Insore arise? >> To ask the bill sponsor a question. >> Does the gentleman from Rutherford yield to the lady from Orange? >> I am not the bill sponsor but I will answer the question. >> Yes, he yields. >> Representative Hager is this for a specific area, is this a general bill that would be applicable anywhere or are there specific sites in mind where this would take place? >> There are, I think I am not sure, I've heard there maybe three sites for a large manufacturer like an auto bill facility or the time silver came but this is general for all across North Carolina and it's more general for Tear 1 and Tear 2 counties that don't have this infrastructure. If you're living in a tear 3 county in Wake County like Representative Stam and the rich area not like us in the hinterlands we don't have gas lines and if a large business is gonna locate again, $200 million investment, 1,500 jobs, if they're gonna locate near like I live in, they're not gonna come unless they have the infrastructure like this. So if you already have the infrastructure, then you don't get this in senate. If you don't have the infrastructure tier one or tier two county,

then this will probably apply to you. >> A follow up question. >> Does the Gentleman yield to a additional question? >> I do. >> He yields. >> Are you aware of this specific project that is ready for this bill? >> No mam I am not but I'm not pivot to those. The economic developers of North Carolina all support this Bill. So there aware of how good a tool this is. >> For what purpose does the gentleman from Lincoln Representative Saine rise? >> To ask if the sponsor will yield for some questions. >> Does the gentleman from Rutherford yield for the gentleman from Lincoln? >> I will. >> He yields. >> Thank you Representative Hager, just a few quick question if you'll indulge me. First of all, does your county on your area that you represent do you have all the trappings that would invite new businesses into your area or you're missing some things? >> Representative Saine, I live in a county of 68,000 people. We don't have expensive gas lines, we don't have internet all over the county, I don't have a large airport, I don't have that infrastructure that would attract the large business we need help to get that there. >> Follow up. >> Does the gentleman yield to an additional question? >> Representative Hager, what you're telling me is that your area and others across the state don't have the necessary infrastructure? >> That is true. Fortunately, unlike Representative Yarborough, we do have indoor plumbing. >> Followup. >> Does the gentleman yield to an additional question? >> I do >> He yields. >> I would say that's a plus, but do you have people who wanna go to work? >> We do you know through the recession our unemployment got up to 19.2% unemployment [INAUDIBLE] in my district still is several percentage points above the average of North Carolina that especially multiple percentages above where Representative Stam or Mecklenburg county has so therefore we need more to attract folks. You should be able to get employment, good employment no matter where you live and we should be helping those folks out. >> Thank you Mr. Speaker. Thank you Representative Hager. For what purpose does the gentleman from Rutherford Representative Hager rise? >> To debate the bill a second time. >> The gentleman has the floor to debate the bill a second time. >> Thank you Mr. Speaker, as we said economic developers all across North Carolina support this bill as a tool they can put in their so called tool box. It's a $200 million investment more than likely to use this tool into a tier one or tier two county and 1500 jobs. That would drastically change the face of my district and probably so much of yours. I can remember someone said while other people for it? Guess what, if your doing economic development in North Carolina your paying for it and your constituency are paying for it. If you do that to [INAUDIBLE] This is just another way to get to the same issue. I appreciate the gas companies coming up with this idea, I think it's gonna be great. And it's gonna be great for tier one and tier two counties. If you really want to see this tool use, you really wanna see tier one, tier two counties prosper with this kind of investment vote green on this bill please. >> For what purpose does the gentleman from Mecklenburg Representative Brawley rise? >> To debate the bill. >> The gentleman has the floor to debate the bill. >> Mr. Speaker I guess I should admit the first job I had after I got my Accounting Degree was as a great analyst for Piedmont Natural Gas and I used to do five filings with the utilities commission and I understand a little bit about rate making and what we are actually talking about here. Piedmont Natural Gas had a good service area in a leave with public service along the transco pipeline, and if you are in Mecklenburg County, and you need natural gas with a big main and high pressure, you can get it fairly easy, but if you are in say Avery county or Watauga County, you are not gonna be able to get the same level of gas service. For a large infrastructure project, the $200,000,000 investment that 1,500 jobs is a huge facility, that's going to require running a main indoor county that currently does not have natural gas service, and I thought of an example earlier today. A few years ago we had a bill involving running natural gas into Haywood County. There was a paper plant that had been powered by coal burner for a number of years. >> Just a moment Representative Brawley. [SOUND] The house will come to order. The gentleman has the floor. >> Thank you Mr. Speaker. Changes in EPA regulations require the replacement of the burner with natural gas but there was no natural gas service in Haywood county. And it was necessary for us appropriate some money to run the gas line to preserve the largest employer in Haywood County. In a similar situation or were this today a program like this could be used for a large facility in a tier one remote county that does not currently have natural gas service. Now, once the mains are in place, there are other others that would be able to start with accepting natural gas, and

that would create competitive pressures against propane dealers and I can certainly understand they would hesitate to lose the market. Having said that, something like a car plant is not gonna power itself with propane. They will want piped natural gas because it is not subject to interruption by weather. This bill doesn't help me a bit Mecklenburg County cuz we can get all the gas we need. But I would be inclined to support it because I have heard the cries of many of those who represent poor counties that have lost their infrastructure. Part of the reason that we even discussed sales tax redistribution was a way to help economic development in tier one counties. And this is one way to do it. I will support the bill. >> For what purpose does the gentleman from Dublin, Representative Dixon rise? >> To -debate the bill. >> The gentleman has the floor to debate the bill. >. Thank you Mr. Speaker members of the house, several years ago this was done in my part of the state primarily to help tobacco farmers get access to this product. Probably about ten years after that happened US coast storage came to Warsaw as a direct result of having that access to gas there and we run maybe 4 to 500 million pounds of poultry products through US core storage now that goes all over the world and it will not have come there if it hadn't been for the access to that product. >> For what purpose does the gentleman from Craven Representative Speciale rise? >> Speak on the bill second time. >> The gentleman is recognized to debate the bill a second time. >> If I If I needed the service line to my house I would be responsible for paying for it. If you need it run to your company or to a business, you should be responsible for paying for it. Now if turns out it's a lot more money than you can afford you gotta couple options find another place where they have it and it's just common sense or what you can do is you can apply to the state to get some of that money from JD and half a dozen other things that we put three quarters of a billion dollars into last budget because isn't what that money is for? To help this businesses get started and help them get into place, help them with infrastructure and now we wanna say well you know what, if you need this pipeline we're just gonna have all the low income folks and the middle class people we're gonna have them pay for it for you. This makes absolutely no sense I hope you give this a lot of thought there's a million ways to do this but to take something that's popped up at the end of session here like this and trying to make a decision on it and this is something we should be looking at next year over the long hall. Representative said that there was nothing specific in mind for doing this so what's the hurry. Let's look at it next year. We're giving away money, we're reaching into the taxpayers pocket and pulling money out by the fist fulls to throw at companies, well by golly, some of that money should be able to extend the pipeline. Please give us some thought and vote no on this. >> For what purpose does the gentleman from Cumberland representative Floyd rise. >> To see if the bill carrier a real forward question. >> Does the gentleman from Raeford yield to the gentleman from Cumberland. >> I do >> Would you give us the other two sites. >> Yes sir I can. There's Nash, edge,Cum and Randolf counties were the three areas, just got a text from the folks. >> For what purpose does the gentleman from Ash Representative Jordan rise? >> To debate the bill. >> The gentleman has the floor to debate the bill. >> Thank you Mr Speaker, members I wasn't gonna say anything but Mr. Brawley brought in my district by mentioning Wetauga which is a tier three count. Ask counties tier one we both have natural gas coming in. We have none of this giant industries, so I guess we'll be helping to pay for the mega sites hundreds of miles away, thank you. >> For what purpose does the Gentleman from Yancey, Representative Personnel rise? [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO]